Course Agenda

Part One: Risk Overview

1. General Counterparty Risks and Solvency
   1. Know Your Counterparty, Know Your Customer ("KYC")
   2. Identification and Articulation of the Eleven Core Counterparty Risks
   3. Introductory Illustrations and Discussion
2. Standard Buy-Side Transactional Risks
   1. Security
   2. Lending
   3. Trading
   4. Investing
   5. Distribution
   6. Alternative Solutions
3. Regulatory Risks
   1. Regulatory Empowerment and Authorization
   2. Regulatory Oversight
   3. Levels of Regulatory Intervention
4. Disclosure Risks
5. Rating Agency and Access Risk
6. Macro/Sector Risks
   1. Competitive Environment
   2. Product and General Business Risk
   3. Distribution Risk
   4. Structural Risk
7. Common Denominators and Risk Differentiation
   1. Product Mix
   2. Reserve Adequacy and Loss Development
   3. Reinsurance
   4. Operating Performance
   5. Asset Quality
   6. Liquidity and ALM
   7. Intercompany Considerations
   8. Capital Adequacy
   9. Structure and Leverage
   10. Management
   11. General Sector Issues
8. Early Warning Signs/Red Flags
9. Summary Cases
   1. Illustrations and Discussion
   2. Review Assignment

Part Two

1. Case Review: Discussion and Illustration of Case Assignment
2. Introduction to the Scoring Matrix
   1. The Property & Casualty Operating Company Scoring Matrix
   2. The Holding Company Matrix: Stock Holding Companies
   3. The Holding Company Matrix: Mutual Holding Companies
3. Developing the Matrix
   1. Components of the Matrix
   2. Score Development
   3. Risk Factors
   4. Weighting
   5. Compiling and Populating the Matrix
4. In-Seminar Exercise: Scoring the Operating Property & Casualty Insurance Company
5. Case Assignment: Scoring Exercise

Part Three

1. Case Review
2. Scoring The Holding Company
   1. Stock vs. Mutual Holding Companies
   2. Designing the Holding Company Matrix
   3. Taking into Consideration Non-P&C Insurance Subsidiaries and Affiliates
3. Comparison of Risk Assessment Methodologies
   1. Moody's
   2. Standard and Poors
   3. A. M. Best
   4. Fitch
   5. The Imperative of Developing One's Own Methodology
4. General Risk Assessment and Risk Minimization Guidelines: a Recapitulation
5. Documentation Fundamentals
   1. The Credit Agreement
   2. The ISDA and CSA
   3. Collateral Issues