Chapter 2

Question 1

What are the 2 different types of directors and their roles?

Answer 1

• Executive Directors
  ○ Work Full time in the company
  ○ CEO

    - Non-Executive Directors
    ○ Part time in the company
    ○ Attend board meetings and may be members of subcommittees in order to provide independent views

Question 2

What are the 5 main resposibilties of the board?

Answer 2

○ Regulation of the executive directors and senior managers to ensure shareholders interest are upheld
○ Approve the report and accounts, annual budgets strategy and other important plans
○ Rewarding the CEO and ensuring succession planning
○ Risk management process is over seen
○ Ensuring that the company’s integrity and principles are upheld on critical matters

Question 3

UK Corporate Goverance Code sets out?

Answer 3

○ Board composition and development
○ Remuneration
○ Accountability and audit
○ Relations with stakeholders

Question 4

Give me an example of a role of a CEO?

Answer 4

Help to formulate the company objectives and policy and they organise resources in order to translate the board policy into operational activities.

Question 5

Give me some examples of a role of a CFO?

Answer 5

○ Economic capital model
○ Stress and scenario testing
○ Proposals to the board on the form of capital
○ Preparation of the Financial information required by the PRA
○ Management of debt, cash flow, liquidity and treasury matters
- Management of the investment portfolio

Question 6

Give me some examples of a role of a company secretary?

Answer 6

• Maintaining the company’s statutory books
  
  • Filing annual returns to the companies House
  • Arranging meetings of the directors
  • Informing companies house of any significant changes in the company’s structure

Question 7

Give me some examples of a role of a chief actuary?

Answer 7

• Technical pricing of new and existing products
  
  • Calculation of claims reserves- using the Kernal Process
  • Calculation of risk based capital requirements

Question 8

CLOP

What are some examples of roles of managers?

Answer 8

Controlling
Leading
Organising
Planning

Question 9

ARRT and 2C’s

Roles of Effective internal communication?

Answer 9

Accurate, Reliable, Relevant, Timely, Clear and Credible

Question 10

GIve me 5 barriers to effective communcation?

Answer 10

○ Size of organisation
○ Natural Reserve
○ Grapevine - Rumours
○ The Language problem
○ The problem of time

Question 11

OAP MCD’s

What are the 6 Management Styles?

Answer 11

• Open Door
• Autocratic
• Paternalistic
• Militaristic
• Democratic
• Chaotic