Westpac employees' superannuation is managed in-house by its wholly owned wealth management subsidiary BT Financial Group. The Westpac Superannuation Fund offers Defined Benefit and Defined Contribution accounts to its members, however the Defined Benefit fund is closed to new members. The Defined Benefit fund pays retirement benefits to its members in the form of inflation indexed pension or a lump sum, or a combination of the two.

1Given the information provided, identify and describe TWO relevant and important risks for the Westpac Defined Benefit fund in regards to the fund's primary objective. Discuss one quantitative risk measure that the board gauge such risks. 2Identify and describe one relevant and important quantitative risk measure for the Defined Benefit fund that may help the trustee board to measure the key risk of achieving its objective in regards to the life expectancy assumption used in its projected obligations. (Tips: You are expected to explain how life expectancy of the members affects the projected obligations of the DB fund)