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. Asset Management
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. Asset Quality
   2. Operating Performance
   3. Reinsurance
   4. Structure and Leverage
   5. Intercompany Considerations
   6. Operating Liquidity and ALM
   7. Shock Liquidity, Run-on-the-Bank Scenarios
   8. Reserve Adequacy
   9. Capital Adequacy
   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 Life 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 Life 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-Life 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