• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

April 2012_q 4 (ii) Internal model process

E

Edwin

Member
Hi, the question asks us to outline the process which should be followed to develop an internal by the company.

Due o the overlap between internal model and EC I laid out the ECM process steps outlined in the IAA note and summarized in section 1.4 of Chapter 26.

The examners focused on the generic ERM model steps borrowed from CA1 and shown in Chapter 17 of Acted notes.

Could I have gained a little credit for my solution?
 
I would expect you to earn quite a few marks for this - there is a lot of overlap in the processes. The big difference is that the internal model needs to be well documented and validated (which should be, but may not be, the case for an internal ECM!)
 
Back
Top