SOA CFE SDMCorporate Finance & ERM — Strategic Decision Making

Fellowship (FSA)

5 hours·≈8–10 case-based written-answer questions·≈450 study hours

Score 0/0 · 5 MC

CFE SDM · Q1
Multiple choice
ERM in strategy: capital, risk appetite, performance
Business unit A earns 60 on economic capital 500; unit B earns 30 on 200; hurdle 12%. Which creates value?
CFE SDM · Q2
Written answer
ERM in strategy: capital, risk appetite, performance
The board wants to grow the company's variable annuity sales by 50% over three years. Using economic capital and risk appetite concepts, evaluate the proposal and recommend conditions under which you would support it.