Module Details 
The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module. 
Title  MATHEMATICAL RISK THEORY  
Code  MATH366  
Coordinator 
Dr A Papaioannou Mathematical Sciences A.Papaioannou@liverpool.ac.uk 

Year  CATS Level  Semester  CATS Value 
Session 202122  Level 6 FHEQ  Second Semester  15 
Aims 

•To provide an understanding of the mathematical risk theory used in the study process of actuarial interest • To provide an introduction to mathematical methods for managing the risk in insurance and finance (calculation of risk measures/quantities) • To develop skills of calculating the ruin probability and the total claim amount distribution in some non‐life actuarial risk models with applications to insurance industry • To prepare the students adequately and to develop their skills in order to be ready to sit for the exams of CT6 subject of the Institute of Actuaries (MATH366 covers 50% of CT6 in much more depth). 
Learning Outcomes 

(LO1) After completing the module students should be able to: 
Syllabus 

1(a) Decision Theory Optimum strategies, loss/risk functions, expected utility principle, rationality principles and the likelihood principle of optimal strategies, Minimax criterion, proper Bayes rules, model selection, the travel insurance example. 
Recommended Texts 

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module. 
Prerequisites before taking this module (other modules and/or general educational/academic requirements): 
MATH264 STATISTICAL THEORY AND METHODS II; MATH101 Calculus I; MATH103 Introduction to Linear Algebra; MATH162 INTRODUCTION TO STATISTICS 
Corequisite modules: 
Modules for which this module is a prerequisite: 
Programme(s) (including Year of Study) to which this module is available on a required basis: 
Programme(s) (including Year of Study) to which this module is available on an optional basis: 
Assessment 

EXAM  Duration  Timing (Semester) 
% of final mark 
Resit/resubmission opportunity 
Penalty for late submission 
Notes 
final assessment  60 minutes  50  
CONTINUOUS  Duration  Timing (Semester) 
% of final mark 
Resit/resubmission opportunity 
Penalty for late submission 
Notes 
class test open book and remote  around 6090 minutes  50 