Skip to content

IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code

Priya is asked to give an opinion on a pension valuation in an area where she has only limited experience. The deadline is tight and no one else in her firm is available. Under the Code's principle on competence and care, what should she do?

She should accept only if she can obtain suitable review or assistance, otherwise decline. The Actuaries' Code requires competence and care, so work beyond one's skills needs proper support. Concealing limits, blaming the client, or leaving juniors unsupervised breaches that requirement.

  1. AAccept and proceed, relying on her general actuarial qualification
  2. BAccept but omit mention of her limited experience
  3. CAccept only if she obtains suitable review or help, or else decline the workCorrect
  4. DAccept and shift all responsibility to the client
  5. Accept and delegate all the work to a junior without supervision

Explanation

Members should undertake work only where they have the necessary skills and knowledge, or arrange appropriate support or review. Concealing limits or leaving juniors unsupervised breaches competence and care, and responsibility cannot be transferred to the client.

Did you get it right without looking?

One question tells you little. A timed set on Characteristics of a profession and the Actuaries' Code shows your real accuracy, how long you take and where you lose marks.

Practise Characteristics of a profession and the Actuaries' CodeFree diagnostic mock

More Characteristics of a profession and the Actuaries' Code questions