CAIB 4 Chapter 1 Questions And Answers

CAIB 4 Chapter 1 Questions And
Answers
Aesampleemissionestatementemightebee-eCORRECTeeANSWER-
Toebeerecognizedeaseaeleadereinepromotingelong-
termequalityerelationshipsewitheclientseandeinsurerepartnersebyeconductingeourselvesewithei
ntegrity,eprofessionalismeandetheeutmostegoodefaith

Aesampleevalueestatementemightebee-eCORRECTeeANSWER-
Weeseekeandeencourageeinnovativeesolutionsetoeproblemsethatedelivereresultseforeclients

Aesampleevisionestatementemightebee-eCORRECTeeANSWER-
Protectioneofeassetsebyeprotectingewhateiseneareandedearetoeoureclients

Aseparteofetheeplanningeprocesseitewillebeecrucialeforetheebrokerageetoelookeinsideeitselfetoeev
aluateeitsecurrenteleveleofeoperationaleeffectivenesseandecapabilitieseandeit'secompetitiveestr
engthseandeweaknesses.eIdentifyesevenethingseaebrokerageeneedsetoeknoweineorderetoeana
lyzeetheeinternaleenvironmenteandeassesseitsecurrentepositione-eCORRECTeeANSWER-
1.eWhateitedoesebetterethaneitsecompetitors
2.eWhatestrengthseareenotebeingeusedeeffectively
3.eWhateitsecompetitiveeweaknesseseare
4.eHowestrongeiteisefinancially
5.eHowestrongeitsehumaneresourceseare
6.eHowestrongeitseproductelineeis
7.eHoweefficienteandecost-effectiveeiteis

Brieflyeexplaineclienteprofilinge-eCORRECTeeANSWER-
Clienteprofilingeiseperhapsetheegreatestebenefiteofeprofiling.eIteachieveseaecleareunderstandi
ngeofetheenatureeandecharacteristicseofeaebrokerageseclients.

Brieflyeexplainemarketeprofilinge-eCORRECTeeANSWER-
Marketeprofilingeinvolveseidentifying,eanalyzingeandeforecastingekeyemarketplaceefactorsew
hichemayeaffectetheebrokerageebyeposingeaethreateorepresentingeaneopportunity

Brieflyeexplainetheebottom-upeapproach.e-eCORRECTeeANSWER-
Theemanagementestilleprovidesetheemissioneandebroadestrategies,ebuteleavesetheedevelop
menteofeobjectives,egoalseandeactivitiesetoetheeindividualebusinesseunits.

, Brieflyeexplainetheepurposeeofeobjectiveseandetheirerelationshipetoestrategiese-
eCORRECTeeANSWER-

Developingeobjectiveseiseanotherestepeinetranslatingetheebroadedirectionalestatementseofeth
eemissioneintoeconcreteeactions.eObjectivesesupportetheestrategieseandethereemayebeemulti
pleeobjectiveseforeeachestrategy.eObjectiveserefineetheestrategiesewhich,eineturnesupportethe
emission.




Brieflyeexplainewhyeaecombinationeofebotheapproacheseisetheebesteapproach.e-
eCORRECTeeANSWER-

Theecombinationeofebotheapproaches,ewitheopenecommunicationethroughoutetheeprocess,ei
setheekeyetoeeffectiveeandesuccessfuleplanning.eTheeplaneshouldebeedevelopedeaseaejointeeff
ortewithebothemanagementeandetheebusinesseunitseparticipating,ewitheampleedialogueebetw
eenethemeateallestageseofetheeplanningeprocess.

Explainetheeadvantageseandedisadvantageseofetop-downeandebottom-
upeapproachetoeplanning.e-eCORRECTeeANSWER-TopeDown
•eManagementeisefirmlyeinecontrol
•eMayefailebecauseeemployeesedon'tebuyeintoeit
BottomeUp
•eEmployeesesetetheeplane-ebuy-in
•eManagementefeelsethatetheyeareenoteinecontrol

Explainewhateisemeantebyetheeflexibilityeofeaeplan.e-eCORRECTeeANSWER-
Aegoodeplanemustealloweforemodification,easeiteisenoterealisticetoeassumeethatetheeenvironme
nteinewhichetheebrokerageecompetesewillenotechange.echangingebusinesseconditions,elosseo
fekeyeemployees,eorechangeetoeinsuranceeregulationsecaneaffecteimplementation.ePlanners
eshouldeprovideeflexibilityesoethatemid-planecorrectionsecanebeemade.




Explainewhateisemeantebyetheepracticalityeofeaeplan.e-eCORRECTeeANSWER-
Aeplanemustebeerealisticeineordereforeitetoework.eEveneaewelleconstructedeplanewillebeedoome
detoefailureeifeiteiseimpossibleetoeimplement.

Explainewhateisemeantebyetheeseverabilityeofeaeplan.e-eCORRECTeeANSWER-
Theefinishedeplaneisetheecollectioneofeitseparts.eTheseepartsemustebeeseparateeandeidentifiab
leesoethateeachebusinesseunitecaneseeehowetheyeapplyetoetheirespecificeareaeoferesponsibilit
yetoeenableethemetoecreateegoalseandeactivitiesetoehelpeachieveetheeplan.

Explainewhateisemeantebyetheesimplicityeofeaeplan.e-eCORRECTeeANSWER-
Theeplanemustebeekeptesimpleeandetheeoutcomeeshouldebeecapableeofebeingecommunicate
deineaesimpleeway.eIteshouldealsoebeecapableeofebeingeimplementedebyeemployeesewithoute
extensiveetrainingewhileetheyecontinueetoedoetheireday-to-dayeresponsibilities.

Goalseexpresseinespecificetermsewhatetheeobjectiveestateeinegeneraletermseandewhichetheest
rategiesestateeconceptually.eGoalseshouldenoteexpressehowetheeobjectiveseshouldebeeacco
mplishedebutetheyeshouldeexpressewhateisetoebeeaccomplishedeandebyewhen.eIdentifyeandeb