CP1: Actuarial Practice

This subject focuses on how actuaries apply their technical skills in a real-world business context. It emphasizes the importance of understanding the business environment, identifying and managing risks, providing sound advice to stakeholders, and developing solutions to complex problems.

Key Areas Covered:

$\bullet \quad$ Understanding the Business Environment: This includes analyzing the regulatory landscape, understanding market forces, and considering the impact of external factors like economic conditions and social trends.

$\bullet \quad$ Risk Management: Identifying, classifying, measuring, and managing risks across various domains, including financial, operational, and reputational risks.

$\bullet \quad$ Developing Solutions: Applying actuarial techniques and models to develop solutions to business problems, such as pricing insurance products, managing investment portfolios, and assessing capital requirements.

$\bullet \quad$ Stakeholder Management: Understanding the needs and expectations of stakeholders, including clients, regulators, and the wider community.

$\bullet \quad$ Professionalism and Ethics: Adhering to professional standards, ethical principles, and regulatory requirements.

Assessment:

The assessment consists of two written papers:

$\bullet \quad$ Paper 1: Focuses on knowledge and straightforward applications of the subject matter.

$\bullet \quad$ Paper 2: Involves case studies that assess higher-order skills, such as problem-solving, critical thinking, and decision-making.

Overall, CP1 equips actuaries with the essential business and professional skills needed to succeed in their careers. It bridges the gap between technical knowledge and its practical application in a real-world context.