Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA > Modules 6-8
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

DW Simpson
Actuarial Jobs

Visit our site for the most up to date jobs for actuaries.

Actuarial Salary Surveys
Property & Casualty, Health, Life, Pension and Non-Tradtional Jobs.

Actuarial Meeting Schedule
Browse this year's meetings and which recruiters will attend.

Contact DW Simpson
Have a question?
Let's talk.
You'll be glad you did.


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 05-21-2012, 02:53 PM
Divergence2 Divergence2 is offline
Member
 
Join Date: Sep 2008
Studying for C/4
Posts: 90
Default FA Task 6

Do you think it's necessary to tell the mine owners all the assumptions that go into the model?
__________________
Reply With Quote
  #2  
Old 05-21-2012, 09:19 PM
uclatommy uclatommy is offline
Member
SOA
 
Join Date: Nov 2005
Posts: 240
Default

Quote:
Originally Posted by Divergence2 View Post
Do you think it's necessary to tell the mine owners all the assumptions that go into the model?
IMHO, no. I took off my actuary hat and put on my management consultant hat when writing this task.
__________________
VEE Econ VEE Stat VEE Finance P/1 FM/2 MFE/3F MLC C/4 FAP IA FAP FA APC
Reply With Quote
  #3  
Old 05-28-2012, 02:17 PM
McBride McBride is offline
Member
CAS SOA
 
Join Date: Oct 2006
Posts: 73
Default

Did anyone discuss the results of task 5 in their management memo? That doesn't seem like something you would discuss in a memo where you are making specific recommendations to management unless you are telling management that you can't make a specific recommendation without additional information.
Reply With Quote
  #4  
Old 05-28-2012, 02:24 PM
McBride McBride is offline
Member
CAS SOA
 
Join Date: Oct 2006
Posts: 73
Default

Quote:
Originally Posted by McBride View Post
Did anyone discuss the results of task 5 in their management memo? That doesn't seem like something you would discuss in a memo where you are making specific recommendations to management unless you are telling management that you can't make a specific recommendation without additional information.
Never mind...figured out a way to include this information.
Reply With Quote
  #5  
Old 10-07-2012, 05:52 PM
JoeSpo JoeSpo is offline
Member
 
Join Date: Sep 2009
Studying for life
Favorite beer: Hoegaarden
Posts: 243
Default

Quote:
Originally Posted by uclatommy View Post
IMHO, no. I took off my actuary hat and put on my management consultant hat when writing this task.
I'm having trouble with this task...
Mind lending me your management consultant hat?

I can trade you my 'caring boyfriend' hat. It doesn't get used much these days, but I have received immense praise for it in the past.
Reply With Quote
  #6  
Old 10-07-2012, 06:13 PM
waterborne waterborne is offline
Member
SOA
 
Join Date: Nov 2010
Posts: 1,515
Default

Quote:
Originally Posted by Divergence2 View Post
Do you think it's necessary to tell the mine owners all the assumptions that go into the model?
I think it is necessary. IMO, management should know what interest rate, investment yield, hedging strategy, etc. were used in the analysis. Without this information, how can they make any decisions with the results given to them?

If an investment firm told you they could get you certain results, wouldn't you want to know what investment yield they assumed in determining their anticipated success?
Reply With Quote
  #7  
Old 10-11-2012, 11:32 AM
komorgan komorgan is offline
Member
Non-Actuary
 
Join Date: Mar 2012
Posts: 119
Default

Quote:
Originally Posted by Divergence2 View Post
Do you think it's necessary to tell the mine owners all the assumptions that go into the model?
I suppose it couldn't hurt to add that, as long as you don't overwhelm them with technical jargon.

However, I think the most important things in Task 6 are to (1)include specific recommendations for the mine (put these towards the beginning of the memo) and (2) cite some figures that back up these recommendations (e.g. the expected profit, the chance of incurring a loss, etc.). These are the 2 things that they emphasized in my FA Feedback.

Hope this helps.
Reply With Quote
  #8  
Old 10-11-2012, 12:05 PM
hereforFAP hereforFAP is offline
SOA
 
Join Date: May 2012
Posts: 4
Default

Quote:
Originally Posted by waterborne View Post
I think it is necessary. IMO, management should know what interest rate, investment yield, hedging strategy, etc. were used in the analysis. Without this information, how can they make any decisions with the results given to them?

If an investment firm told you they could get you certain results, wouldn't you want to know what investment yield they assumed in determining their anticipated success?
It definitely isn't necessary, as I didn't include these and passed-I think komorgan's advice is spot on
Reply With Quote
  #9  
Old 10-11-2012, 12:08 PM
waterborne waterborne is offline
Member
SOA
 
Join Date: Nov 2010
Posts: 1,515
Default

Quote:
Originally Posted by hereforFAP View Post
It definitely isn't necessary, as I didn't include these and passed-I think komorgan's advice is spot on
I definitely agree. But then again, komorgan's advice doesn't answer the OP's question.
Reply With Quote
Reply

Tags
final assessment, task 6

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 05:03 PM.


Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.40988 seconds with 9 queries