The actuarially fair insurance premium. Introduction: In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

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Answer 1

Question

Chapter 23, Problem 10QP

a)

Summary Introduction

To determine: The actuarially fair insurance premium.

Introduction:

In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

b)

Summary Introduction

To determine: The maximum payment after modification.

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Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case Step 1 Risks Brief description & how it relates to the case Step 2 List of possible risks Likelihood/Probability of occurrenceH/M/L or Nil Impact (if occurred)H/M/L or Nil What is being done about it now What more can be done about it Dept. where risk exposure exists Step 3 Risk identified Impact (if occurred)H/M/L Probability of occurrenceH/M/L Dept. where risk…

Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case Step 1 Risks Brief description & how it relates to the case Step 2 List of possible risks Likelihood/Probability of occurrenceH/M/L or Nil Impact (if occurred)H/M/L or Nil What is being done about it now What more can be done about it Dept. where risk exposure exists Step 3 Risk identified Impact (if occurred)H/M/L…

Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case

Answer 2

Question

Chapter 23, Problem 10QP

a)

Summary Introduction

To determine: The actuarially fair insurance premium.

Introduction:

In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

b)

Summary Introduction

To determine: The maximum payment after modification.

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Answer 3

Question

Chapter 23, Problem 10QP

a)

Summary Introduction

To determine: The actuarially fair insurance premium.

Introduction:

In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

b)

Summary Introduction

To determine: The maximum payment after modification.

Expert Solution & Answer

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Answer 4

Question

Chapter 23, Problem 10QP

a)

Summary Introduction

To determine: The actuarially fair insurance premium.

Introduction:

In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

b)

Summary Introduction

To determine: The maximum payment after modification.

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 10QP

a)

Summary Introduction

To determine: The actuarially fair insurance premium.

Introduction:

In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

b)

Summary Introduction

To determine: The maximum payment after modification.

Answer 6

Chapter 23, Problem 10QP

a)

Summary Introduction

To determine: The actuarially fair insurance premium.

Introduction:

In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

Answer 7

Chapter 23, Problem 10QP

a)

Summary Introduction

To determine: The actuarially fair insurance premium.

Introduction:

In financial perspective, the insurance is a protection from the financial losses. It is one of the popular instruments which prevent potential loss of an individual or a company with minimal cost. Generally, it is imperative to protect the companies from uncertainty or abnormal events.

Answer 8

b)

Summary Introduction

To determine: The maximum payment after modification.

Answer 9

b)

Summary Introduction

To determine: The maximum payment after modification.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 23.1 - Prob. 23.1ACQ Ch. 23.1 - Prob. 23.1BCQ Ch. 23.2 - Prob. 23.2ACQ Ch. 23.2 - Prob. 23.2BCQ Ch. 23.3 - What is a forward contract? Describe the payoff...Ch. 23.3 - Prob. 23.3BCQ Ch. 23.4 - Prob. 23.4ACQ Ch. 23.4 - Prob. 23.4BCQ Ch. 23.5 - Prob. 23.5ACQ Ch. 23.5 - Prob. 23.5BCQ

Solution Summary: The author explains the actuarially fair insurance premium and the maximum payment after modification.

To determine: The maximum payment after modification.

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Chapter 23 Solutions