In this situation, the sophistication of the potential “other parties” may be a factor to consider.
For example, if the Principal is expected to share
the Actuarial Communication only with senior
management or within the C-suite, and there have
been other recent Actuarial Communications
to provide context, then the Actuary may conclude that little or no additional information/
discussion is appropriate. On the other hand, if
the Actuarial Communication has the potential
to be shared more broadly within the Principal’s
organization—or even with the public at large—
then the Actuary may conclude that additional
discussion or information is warranted.
And certainly there is no one right answer;
the Actuary would need to consider the specific
facts and circumstances. In fact, the Principal
might be very sensitive to any hint of differing points of view and extensive discussion
that might highlight an issue. Nonetheless, our
Code of Professional Conduct requires that
the Actuary be aware of the potential for an
Actuarial Communication to be used to mislead
others—and to take reasonable steps to address
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whatsoever sustained by any person who relies on this communication.
JOHN T. STOKESBURY is a managing
director at Deloitte Consulting LLP and
a member of the Actuarial Board for
Counseling and Discipline.
[ 1] Cf. ASOP No. 1, Introductory Actuarial
Standard of Practice, section 2. 8. Principal—
“A client or employer of the actuary.”