Non-Trivial Prob.

wilsonchan18wilsonchan18
in CIA.FCT

Hi,

In the Solvency Scenario, I saw description about the plausible adverse scenario (an adverse scenario that has a non-trivial probability of occurring). May I know what does non-trivial mean here?

Thanks and Cheers,
Wilson

Comments

  • grahamgraham

    There is no definite value, but non-trivial often means greater than 1% chance of occurring.

    If a scenario has only a 1-in-a-million chance of occurring, it would not be a plausible adverse scenario because 1-in-a-million would be a trivial probability.

  • wilsonchan18wilsonchan18

    because it is definitive and also more than 1 percent. Okay, I think I know it then. Thanks Graham! :)

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