Operational and CAT risk

ststudyingfor6

In some past exam problems, e.g. Spring 2017 #3, operational and CAT risk are stated as types of risks not captured by RBC. This is also listed as a difference between RBC and rating agencies. However, now operational risk is included as a multiplicative factor, and we have RCAT - so are these types of risks still in development or the questions are just outdated?

graham

Yes, those questions are outdated. Take a look at the Study Tips for the RBC wiki article here:

• https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Study_Tips

Catastrophe risk and operational are now part of the RBC formula (not in development.) Here are a couple of other outdated exam problems that mention those risks as not being part of the RBC formula:

• https://battleacts6us.ca/pdf/Exam_(2017_2-Fall)/(2017_2-Fall)_(18).pdf
• https://battleacts6us.ca/pdf/Exam_(2016_2-Fall)/(2016_2-Fall)_(16).pdf

I also added a footnote to the BattleTable mentioning that. (Footnote 9)