Cash Flow Testing Step Count

[bmg]

I've found that it's common for companies to do their cash flow testing in steps where you measure the impact of each change as you make the change. So you may update your expense assumption in one step. Update your lapses in another step. And on and on. I'm used to seeing companies measure changes in steps like this at least on the NY #1 baseline scenario.

If this way of proceeding through the exercise seems familiar to you, roughly how many CFTing steps does your company typically go through from beginning to end? I'm looking for very rough numbers to gauge how in line with standard practices my company is. And I realize that the number really depends on the circumstances and may change from year to year.

Thanks in advance for sharing your experiences!

[FattyMcGee]

at a minimum, you would have 3:

update liability profile
update asset profile
update scenario set

on top of that, it's not out of line to have another 5 - 10 for assumption changes or model enhancements.

[MathGeek92]

agree with Fatty.. only do the material ones.. rest are jsut a waste of time