Spring 2014 Q16b

Tony88passTony88pass
in OSFI.Eqk

Hi Graham,

Just wondering what part b tests us on here? I thought it asks for 4 out of the 7 best practices of EQ modeling, seems not.

Comments

  • Tony88passTony88pass
    edited September 2021

    Spring 2017 Q17c as well, btw are part a and b outdated question?

  • grahamgraham
    edited September 2021

    I'm glad you asked because this is a common mistake people make when answering questions from the earthquake reading. There are actually 2 different questions that can be asked but they sound very similar:

    • describe the 5 key principles for managing earthquake exposure
    • what are the best practices for earthquake modeling [Hint: DAQKD-UP]

    For the 5 key principles, one of them is about modeling, so if you are asked about how to improve the risk estimation process, you could list "improve modeling" as one of your answers (although you would have to provide details) but you would also have to list some principles other than modeling.

    In contrast, if you are specifically asked about modeling, your answer would only have to discuss aspects of improving modeling.

    The exam questions you referenced in your posts were essentially asking in general about the key principles of managing earthquake exposure, not modeling in particular.

    Also, I don't think parts a and b are outdated. Let me know if you think otherwise.

  • Tony88passTony88pass

    That makes sense, for part a and b I was just curious since they aren't in the quiz.

  • grahamgraham

    Ok, I see. This question has been asked multiple times so I usually only include in the quiz the most recent exam problem where it was asked. Otherwise, the quizzes would have a lot of duplicate questions.

    You can check whether it's outdated by using the following link to view all old exam problems:

    https://battleactsmain.ca/BB_byExam.php

    You can also get there using the link to BattleCards - Prior Exams in the "Custom Battles" box. (Note also that you don't get BRQ points for duplicate questions.)

  • ThrowGrowThrowGrow

    Hi Graham,

    Is it correct to see the two questions below asks about the same thing? Thanks!
    1. Briefly describe the key principles identified by OSFI for managing earthquake exposure
    2. Briefly describe four practices the company could use to improve the earthquake risk estimation process

  • grahamgraham

    There is overlap between these questions, but you may have to be more specific when answering the second question about how to improve the earthquake risk estimation process. Take a look at these 2 exam problems for that:

  • ThrowGrowThrowGrow

    Thanks Graham for the explanation and the link to past questions!

  • oxalisoxalis
    edited April 2022

    Hi,

    for the 2 exam questions referred above, I would answer around these points (from BCAR-cat) since it's asking about the strong cat risk management, do you think it's also valid?

    • Catastrophe modeling: parameter selection is critical & use more than 1 model

    • Data quality:
      accurate property location & coding, attributes
      accurate property value & insurance-to-value
      conduct site reviews so that information is up-to-date
      implement safeguards to prevent manipulation by underwriters or agents

    • Aggregate loss exposure: use aggregate loss exposure as a secondary test of cat model

    • Monitoring (MML): Measure, Monitor, Limit exposure on a continuous basis

  • Staff-T1Staff-T1

    I think so. The CAS are not rigid and if an answer makes sense from another paper that was not the paper being targeted, it will generally be accepted too as long as it makes sense

Sign In or Register to comment.