Program Overview

Introduction to ACST4002 Actuarial Control Cycle 1

ACST4002, Actuarial Control Cycle 1, is a unit offered by Macquarie University, designed to develop and apply actuarial principles and practices underlying the design, assessment, management, and control of financial systems. This unit, in conjunction with ACST4003 (or ACST403) Actuarial Control Cycle 2, considers the process of actuarial and financial management, including product design, pricing, marketing, monitoring of experience, reserve setting, financing, solvency, determination and distribution of surplus, and its role in enterprise risk management.

General Information

• Unit Convenor and Teaching Staff: The unit convenor is Simon Guthrie, and the lecturer is Bruce Edwards.
• Credit Points: 10
• Prerequisites: ACST3059
• Corequisites: None
• Co-badged Status: None
• Unit Description: This unit develops and applies the actuarial principles and practices underlying the design, assessment, management, and control of financial systems in areas such as life insurance, general insurance, superannuation, and other less traditional areas of actuarial practice.

Learning Outcomes

On successful completion of this unit, students will be able to:

• Discuss and apply an Actuarial Control Cycle in a variety of practical commercial situations.
• Relate the main features of the actuarial control cycle within the general environment to medium and long-term commercial decisions.
• Analyse the main features and risks of financial products and contracts from the point of view of consumers and providers.
• Demonstrate an understanding of enterprise risk management and apply a risk assessment framework to identify and assess the risks in a range of situations.
• Discuss and apply the process of product design.

Assessment Tasks

• Skills Development: Presenting (15%): A presentation where students apply the Actuarial Control Cycle and related concepts to practical commercial scenarios.
• Formal and Observed Learning: Exam (70%): A 3-hour exam held during the University Examination period to demonstrate expertise gained relating to the Actuarial Control Cycle.
• Skills Development: Actuarial Control Cycle (15%): A portfolio to consistently build up skills and expertise regarding the Actuarial Control Cycle.

Delivery and Resources

• Classes: Lecture classes and a common teaching website shared with units ACST7031 and ACST8031.
• Style of Classes: Workshops with a mixture of short "micropresentations," small group work, discussions, and individual activities.
• Online Lecture Recordings: Available through the University's lecture recording facility (ECHO360).
• Teaching Staff: Simon Guthrie and Bruce Edwards, with a teaching administrator for administrative queries.
• Assumed Knowledge: Knowledge and skills acquired in subjects CT1 to CT8 of Part I of the Actuaries Institute education program.
• Required and Recommended Texts and Materials: The textbook "Understanding Actuarial Management: The Actuarial Control Cycle" by Bellis, Lyon, Klugman, and Shepherd.

Unit Schedule

The unit schedule outlines the topics covered each week, including:

• Week 1: Meeting Consumers' Needs
• Week 2: Product Development
• Week 3: Context of Actuarial Work
• Week 4: Financial Services Overview
• Week 5: Modelling
• Week 6: ERM
• Week 7: Presentations
• Week 8: Applying Risk Management
• Week 9: Capital 1
• Week 10: Capital 2
• Week 11: Pricing 1
• Week 12: Pricing 2
• Week 13: Revision

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central, including:

• Academic Appeals Policy
• Academic Integrity Policy
• Academic Progression Policy
• Assessment Policy
• Fitness to Practice Procedure
• Assessment Procedure
• Complaints Resolution Procedure for Students and Members of the Public
• Special Consideration Policy

Academic Integrity

Macquarie University emphasizes academic integrity, providing resources to support students in meeting expectations, including free online writing and maths support, academic skills development, and wellbeing consultations.

Student Support

The university offers a range of support services, including:

• Academic Success resources for English language proficiency, academic writing, and communication skills.
• Library support for finding and using relevant information resources.
• IT Support
• Accessibility and disability support
• Mental health support
• Safety support
• Social support
• Student Advocacy