What is included in the Required functions within a financial institution?

The correct answer, which identifies the actuarial function as a Required function within a financial institution, highlights the importance of risk assessment and management in financial operations. The actuarial function focuses on analyzing financial risks, especially those related to insurance and pension funds. Actuaries use mathematics, statistics, and financial theory to evaluate the probability of events and their financial implications, playing a crucial role in ensuring that the institution maintains adequate reserves and complies with regulatory requirements.

In the broader context of financial institutions, Required functions are often defined by regulatory frameworks that mandate specific roles and responsibilities to manage risk effectively. The actuarial function supports strategic decision-making by providing insights into potential financial outcomes based on different scenarios. This function is essential for maintaining the institution's financial health and stability, ensuring compliance with solvency requirements and risk management protocols.

Other functions mentioned, such as risk-taking oversight, customer trading management, and sales strategy, while important, do not qualify as Required functions in the same way the actuarial function does. Risk oversight may be more about governance rather than a specific functional role, customer trading management relates more to operational aspects, and sales strategy typically focuses on business growth and revenue generation rather than the direct assessment and management of financial risks.