Battlecard #5 What is contained in senior management's annual eqk. exposure declaration to BOD ?

bkmlocksbkmlocks
in OSFI.Eqk

Hello Graham,

Can you please clarify the following about the Battlecard above?

The given answer is that the senior management is responsible to include the following in the annual declaration to BOD:
1) State compliance
2) And explain calculation of PML

However the text on PG 12 Reporting paragraph seems to say the a senior officer reports compliance & PML details to senior management. Nothing is mentioned about the annual declaration to BOD.

Comments

  • grahamgraham

    Well, I just noticed that there are 2 versions of the OSFI Earthquake reading from February 2013. (The syllabus states that February 2013 is the current version.)

    It looks like the CAS updated the content of the reading earlier this year but did not change the date, did not update the syllabus, and did not announce any change.

    There are 2 differences between the older and newer versions:

    • references to DCAT (Dynamic Capital Adequacy Testing) have been changed to FCT (Financial Condition Testing)
    • a senior officer must now report to senior management about compliance and the PML (which is what you were asking about) rather than report to the Board of Directors.

    I will change the BattleCard to reflect this and will also send an email to the CAS to verify the changes. Thank you for pointing this out.

  • bkmlocksbkmlocks

    Thank you for the clear explanation!

  • xuchaofanxuchaofan
    edited August 2020

    Hi @graham. I think you still didn't have time to change the BattleCards. Also, in the current paper, the "sound and comprehensive earthquake exposure management policy" should also be overseen by the senior management, instead of the board. Thank you!

  • grahamgraham

    Hello @xuchaofan ,

    Sorry, I forgot to make the change. I believe I've now made changes in the appropriate places in the wiki and in the BattleCards. (There were 2 BattleCards, number 5 and 30, and one place in Section 2 of the wiki under "Risk Management".)

    Thanks for following up. Please let me know if you notice anything else.

  • xuchaofanxuchaofan

    Thank you @graham !

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