DCAT - Spring 2016, Q21 c)

Hi,

I am looking at the examer's report. When I was trying to answer the question, here is my answer:

a) Insurance risk UP, CapReq UP, MCT DOWN;
b) Market risk UP, CapReq UP, MCT DOWN;
c) Operational risk UP, CapReq UP, MCT DOWN.

Just want to confirm if my answer is acceptable in this case.

Thanks!

Comments

  • I think you need to include a few more details. For example, why did the insurance risk go up? You could say it went up because claims increased and claims liabilities are a component of insurance risk. (The answer I gave in the BattleCard might be a little too short.)

    The examiner's report didn't state the impact on MCT, which surprised me. I think it's good you mentioned the final impact on the MCT.

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