Get Help With Your Essay
"Place your order now for a similar assignment and have exceptional work written by our team of experts at an amazing
I’m working on a risk management question and need an explanation to help me understand better.Lee Life is a U.S.-based life insurance company with the following characteristics: Lee currently offers 10- and 20-year term life products with face amounts up to $50 million. It has the second largest share of annual sales volume for the 10- and 20-year U.S. term life insurance market. Recent mortality experience has been higher than expected. Lee reinsures all policies that have a face amount in excess of $5 million with a U.S.-based reinsurer. Lee mostly invests in high-yield U.S. corporate bonds. Over the past several years, management and staff turnover has been low. Lee has followed a consistent corporate strategy for several years. External auditors and regulators have not found any major issues with the company’s management or processes. Lee’s systems use state-of-the-art technology.The ERM department created the following list of ten risk categories for classifying company risks: Market and economic risk Interest rate risk Foreign exchange risk Credit risk Liquidity risk Systemic risk Demographic risk Non-life insurance risk Operational risk Strategic riskClassify each of the ten risk categories as High, Medium, or Low Importance for Lee Life. Justify your choices.