In particular, our risk management strategy based on four pillars (permanent equilibrium in the monetary market, managed floating exchange rate regime, maintenance of external liquidity buffers, appropriate financial regulation and supervision) is fully compatible with these aims as well as with the tools available.
The other method assumes that the sponsor could become insolvent at any time, and so sufficient funds to cover actuarial liabilities must always be available to cover that risk. But the use of the solvency test can, in some circumstances, place an inappropriate burden on sponsors that are unlikely to become insolvent. Consider what happens when asset values are temporarily depressed relative to liabilities.