Policy liability risk and Inflation risk
When reading the educational note, I saw that for the policy liability risk, one of the ripple effects is "Force sale of assets", however in the management action, I don't see an option of "sell assets", but I think it make sense to sell assets when you don't have enough to pay off the claims right?
For the inflation risk, I don't see a ripple effect of "Force sale or assets/liquidity", which I think it should be one of the ripple effects as under significant inflation the premium may be sufficient to pay claims. However in the management action I saw "Selling or reinvesting assets", which should be the action for "Force sale or assets" in my opinion.
The above two cases made me quite confused.
Comments
I don't think the lists of ripple effects and management actions are exhaustive. The subheadings say "Possible ripple effects..." and "Possible management actions...". That implies there are others that are acceptable. I think your reasoning is valid and you would be ok on the exam explaining it like you did.
This is why in the wiki I suggested memorizing a shorter list of common ripple effects and common managements actions so that you don't have to memorize them individually for each of the 9 risk categories. If you are given a scenario on the exam and asked for ripple effects and management actions, just select 1 or 2 from the list of common ones then give an explanation for why it makes sense. Otherwise, it's just too much to memorize. You can see from the old DCAT questions that the graders tend to be a little more flexible when grading these types of questions.