Operational and CAT risk
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a multiplicative factor, and we have RCAT - so are these types of risks still in development or the questions are just outdated?
Comments
Yes, those questions are outdated. Take a look at the Study Tips for the RBC wiki article here:
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 Here are a couple of other outdated exam problems that mention those risks as not being part of the RBC formula:
I also added a footnote to the BattleTable mentioning that. (Footnote 9)