Reserves allow appropriately for uncertainty. Baseline: the Actuarial Function gives a reasoned analysis of the reliability and adequacy of technical provisions and the sources and degree of uncertainty, including parameter and process uncertainty; explanations of why actual results may differ from point estimates; understanding of differences from the Statement of Actuarial Opinion actuary's view communicated to the board; periodic distribution analysis showing where held and best estimate reserves sit. Higher levels add ranges of reasonable best estimates, triggered distribution analysis after shocks, wider uncertainty analysis with input from other functions and identification of future potential risks.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.