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IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies

Meera, an actuary, discovers that her employer's reserving report, already shared with the board, contained a material error that favours the company. Her manager asks her to leave it alone until the next annual cycle. Which course best reflects a sound ethical decision-making approach for a professional actuary?

Meera should raise the material error internally, press for correction, escalate through proper channels if ignored, and document her actions. Delay, private fixes, handing off the file or going to the media either leave users misled or are disproportionate responses.

  1. AWait for the next cycle, because the board has already accepted the report
  2. BRaise the error internally, seek correction, and escalate through appropriate channels if it is not addressed, documenting each stepCorrect
  3. CTell the media so that the public is protected immediately
  4. DCorrect her own copy privately and keep it from the board
  5. Ask a colleague to take over the file so she is no longer involved

Explanation

A professional should act with integrity and not allow a known material error to stand. She should first raise it internally, escalate if needed and keep records. Going to the media is disproportionate, and private correction or handing off the file avoids the duty to ensure users are not misled.

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