Battlecards possible errors

bulubalabulubala
in OSFI.MCT

Identify the subcomponents of insurance risk - I believe the second one should be unexpired coverage. I don't think unexpired coverage and LRC are equivalent.

Describe the purpose of Cap on operational risk - I believe the third condition is no longer there in the text.

Comments

  • Staff-T1Staff-T1

    Yes, on initial glance when I read the paper I thought it was supposed to be LRC. But reading it closely in 4.2.2.2, unexpired coverage is actually LRC without the Risk Adjustment for GMM and some derivation from LRC for PAA that I don't want to write here. Good catch.
    Also bulubala is right for the second point @graham

  • grahamgraham

    Comment 1:

    • Yes, it should be unexpired coverage not LRC. I forgot to change the BattleCard when I changed the wiki. Thx!

    Comment 2:

    • Yes, I did not notice that the source text had indeed removed the comment about "high levels of reinsurance" although the method for calculating operational risk did not change. I'm not sure why they removed it, but I will delete that from the BattleCard because it's best to stick closely to the source text.
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