Management and Reporting

Tony88pass

Hi Graham,

I wanted to ask a few clarifying questions about the last 3 battle cards regarding the management and reporting:
1. I assume here the senior officers refers to C-suite while senior management refers to managers?
2. So the last point in card #33 actually means report to the senior officers?
3. Card#34: Regarding the second point, so the C-suites are responsible for explaining the calculation of PML to BOD here? Which means the actual people who calculated them (Managers/Analysts) have to explain it to the C-suite first?

Thanks,
Tony

graham

For these BattleCards, I used the wording in the source text and the source text doesn't define the term "senior officer" versus "senior manager". For example, here is the sentence from the source text that card 34 is based on:

• A senior officer of an insurer should regularly report to senior management, details on the earthquake exposure and how the exposure is being managed.

This makes it sound like a manager is higher than an officer. But it also says that the officer should explain to the manager how the earthquake exposure is being managed, which doesn't really make sense to me. Wouldn't the manager be the person who should explain to the officer how the risk is being managed?

My honest opinion is that the source text is not well written here. I think the important point is that senior management/officers are different from the Board of Directors. It's senior management/officers who are responsible for day-to-day operations and the Board of Directors has more of an oversight role.

I understand the logic behind your questions, but based on the source text, I cannot give you a more definite answer. Sorry. :-(

I think if you memorize these BattleCards, you should be able to answer any exam question on the topic. So don't worry too much about "true understanding". I don't think the authours understood it very well themselves anyway.