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IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management

Suraksha Life, an Indian life insurer, is drafting a new statement describing why the company exists, who it serves and the values it follows today. Which description best fits this statement as a mission statement rather than a vision statement?

A mission statement describes the organisation's current purpose, its customers and its values, guiding everyday decisions. A future aspirational picture is a vision, and measurable targets are objectives, so the first option is the one that fits a mission statement.

  1. AA description of the company's current purpose, customers and values that guides everyday decisionsCorrect
  2. BA numerical target for market share to be reached within five years
  3. CA picture of the position the company hopes to occupy in twenty years
  4. DA list of the regulatory returns the company must file each year
  5. A budget allocating resources across departments for the coming year

Explanation

A mission statement sets out the organisation's present purpose, who it serves and its values, giving direction to daily decisions. A picture of a future desired position is a vision, and a numerical target is an objective. Budgets and regulatory returns are operational matters, not a mission.

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