Institutional PM – Risk Objectives, CFA exams
DB plan - If exam asks about risk objective, how should we write it?
One of the CFA answers says ‘ short fall risk should not be below this %’.
Other one says about ability and willingness.
Insurance companies and banks – Risk objective. Should we say managing interest rate risk, cash flow risk and credit risk for insurance OR say average, below average or above average? How about banks?作者: former 时间: 2013-4-5 10:33
DB - the risk objective is not falling below the amount required to match the liabilities. BUT if the company can make additional contributions and operational activity is not correlated to investing activities, risk objective can be bigger.- in this case ability is done by capacity to add contributions and willingness is created by willingness to add additional contributions
