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 Core Counterparty Risks
      • Life Reinsurance
      • Property and Casualty Reinsurance
      • Financial Guarantee Reinsurance
      • The Lloyds of London
   3. Introductory Illustrations and Discussion
2. Standard Buy-Side Transactional Risks
   1. Security and Reinsurance
   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. Contracts
   2. Levels
   3. Asset Quality
   4. Operating Performance
   5. Retrocession
   6. Reserve Adequacy
   7. Structure and Leverage
   8. Intercompany Considerations
   9. Operating Liquidity and ALM
   10. Shock Liquidity
   11. Capital Adequacy
   12. Management, General Sector Issues and Outlook
8. Early Warning Signs/Red Flags
   1. Individual Writers
   2. Insurance Markets
9. Case Assignment

Part Two

1. Case Review: Discussion and Illustration of Case Assignment
2. The Insurance Scoring Matrices
   1. The Life Insurance Operating Company Scoring Matrix
   2. The Property & Casualty Operating Company Scoring Matrix
   3. The Holding Company Matrix: Stock Holding Companies
   4. The Holding Company Matrix: Mutual Holding Companies
3. Development of the Unified Scoring Matrix
   1. Unified 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
   1. U.S. Reinsurers and Use of U.S. Financial Disclosure
   2. Swiss and German Reinsurers and Use of their Financial Disclosure
   3. Bermudian Reinsurers and Use of their Financial Disclosure
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-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