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

Rahul, a member of the Institute of Actuaries of India, is offered work on a pension valuation involving a technique he has never used and for which he has no training. His manager says he can learn as he goes and no one will check. Under the Actuaries' Code principle on competence and care, what should Rahul do?

Rahul should decline the work or take it only with appropriate training, supervision or review. The Code requires members to carry out work only when competent and with due care, and neither the lack of review nor a reduced fee changes that obligation.

  1. AAccept the work and rely on the manager's assurance that no review will occur
  2. BAccept the work and disclose the lack of experience only if the client asks
  3. CAccept the work only if the fee is reduced to reflect his inexperience
  4. DDecline the work, or accept it only with suitable training, supervision or peer review so that the work reaches the required standardCorrect
  5. Accept the work and apply the technique he finds easiest, since the result will be unchecked

Explanation

Members must have the skills and knowledge for the work and act with due care. The absence of review does not remove the duty, and a fee discount does not cure incompetence. Appropriate supervision or training can make acceptance acceptable.

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