LOMA 291 Module 4 UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (123)
At a typical insurance company, which of the following A, B, D, & E- All of these areas—except for information technology—are part of a
areas are part of financial operations? Choose all that typical insurance company's financial operations. Although the IT department
apply. plays an essential role in maintaining the quality of the data provided to financial
a. Accounting and financial reporting managers, it is not technically part of financial operations.
b. Treasury operations
c. Information technology
d. Investment operations
e. Internal audit
Board and Executive Roles Provides information to stakeholders
The financial management function Ensures that financial obligations are met
Ensures compliance with complex financial regulations
Generates adequate returns for the company's owners and customers
Role of the Board of Directors - Investment committee: The investment committee sets Forthright's investment
policy and oversees investment operations.
- Audit/risk committee: The audit/risk committee directs Forthright's audit and
internal control function.
The role of the Ceo I approve our budget numbers. Then I manage our resources—in line with budget
guidelines and all current laws and regulations.
Technically I'm responsible for directing financial objectives and strategies, but I
delegate most of these responsibilities to senior financial officers.
However, make no mistake, the buck stops here! We are a publicly held company.
Investors, customers, and regulators can, and should, hold me responsible for our
financial results.
, The role of the CFO As CFO, I report to Grace Avon, our CEO. I work closely with company directors
to develop corporate goals and strategies. I coordinate, monitor, and direct
Forthright's financial activities.
That covers a lot of territory. In the financial world, information quality and
accuracy are critically important—I work closely with IT to make sure we get that
right. That information has to be communicated to company managers and
external parties. When we need to raise funds—that's also my job.
Last, but not least, strong financial controls and measurement tools are absolutely
essential.
Financial Management Operating Units Specific job titles and organizational structures vary according to a company's
unique needs, but all insurers must perform certain core financial functions, as
shown below.
An organization chart. Under Financial Operations are Accounting and Financial
Reporting, Treasury Operations, and Investment Operations. Separate is Internal
Audit.
An insurance company's investment committee directs A company's internal audit and control function is directed by the audit/risk
the company's internal audit and control function. committee. The investment committee sets the company's investment policy and
a. True oversees investment operations.
b. False
Let's look at how Forthright Financial organizes its financial operations, starting
with its accounting and financial reporting function.
accounting A system or set of rules and methods for collecting, recording, analyzing,
summarizing, and reporting financial information.
financial reporting The process of presenting financial data about a company's financial position,
operating performance, and flow of funds.
The controller responsible for the timely and accurate collection and reporting of all of
Forthright's financial data
The accounting function:
Records, tracks, and reports on financial transactions
Coordinates the budget process and oversees expense analysis
Prepares financial statements and reports for external users
Gathers, records, analyzes, and distributes financial information to company
managers
Of the following stakeholders, select the ones Forthright C & E - Internal users work inside the company and make decisions about the
would consider to be internal users of its accounting company's operations. External users are outside the company and use the
information. Choose all that apply. company's financial information primarily to make investment, regulatory, and
a. Regulators other decisions about the company.
b. Rating agencies
c. Board of directors
d. Policyowners
e. Managers
f. Investors
g. Taxing authorities
C
Terms in this set (123)
At a typical insurance company, which of the following A, B, D, & E- All of these areas—except for information technology—are part of a
areas are part of financial operations? Choose all that typical insurance company's financial operations. Although the IT department
apply. plays an essential role in maintaining the quality of the data provided to financial
a. Accounting and financial reporting managers, it is not technically part of financial operations.
b. Treasury operations
c. Information technology
d. Investment operations
e. Internal audit
Board and Executive Roles Provides information to stakeholders
The financial management function Ensures that financial obligations are met
Ensures compliance with complex financial regulations
Generates adequate returns for the company's owners and customers
Role of the Board of Directors - Investment committee: The investment committee sets Forthright's investment
policy and oversees investment operations.
- Audit/risk committee: The audit/risk committee directs Forthright's audit and
internal control function.
The role of the Ceo I approve our budget numbers. Then I manage our resources—in line with budget
guidelines and all current laws and regulations.
Technically I'm responsible for directing financial objectives and strategies, but I
delegate most of these responsibilities to senior financial officers.
However, make no mistake, the buck stops here! We are a publicly held company.
Investors, customers, and regulators can, and should, hold me responsible for our
financial results.
, The role of the CFO As CFO, I report to Grace Avon, our CEO. I work closely with company directors
to develop corporate goals and strategies. I coordinate, monitor, and direct
Forthright's financial activities.
That covers a lot of territory. In the financial world, information quality and
accuracy are critically important—I work closely with IT to make sure we get that
right. That information has to be communicated to company managers and
external parties. When we need to raise funds—that's also my job.
Last, but not least, strong financial controls and measurement tools are absolutely
essential.
Financial Management Operating Units Specific job titles and organizational structures vary according to a company's
unique needs, but all insurers must perform certain core financial functions, as
shown below.
An organization chart. Under Financial Operations are Accounting and Financial
Reporting, Treasury Operations, and Investment Operations. Separate is Internal
Audit.
An insurance company's investment committee directs A company's internal audit and control function is directed by the audit/risk
the company's internal audit and control function. committee. The investment committee sets the company's investment policy and
a. True oversees investment operations.
b. False
Let's look at how Forthright Financial organizes its financial operations, starting
with its accounting and financial reporting function.
accounting A system or set of rules and methods for collecting, recording, analyzing,
summarizing, and reporting financial information.
financial reporting The process of presenting financial data about a company's financial position,
operating performance, and flow of funds.
The controller responsible for the timely and accurate collection and reporting of all of
Forthright's financial data
The accounting function:
Records, tracks, and reports on financial transactions
Coordinates the budget process and oversees expense analysis
Prepares financial statements and reports for external users
Gathers, records, analyzes, and distributes financial information to company
managers
Of the following stakeholders, select the ones Forthright C & E - Internal users work inside the company and make decisions about the
would consider to be internal users of its accounting company's operations. External users are outside the company and use the
information. Choose all that apply. company's financial information primarily to make investment, regulatory, and
a. Regulators other decisions about the company.
b. Rating agencies
c. Board of directors
d. Policyowners
e. Managers
f. Investors
g. Taxing authorities
