INARM

 

 

 

 

Re-post from the Society of Actuaries.

The Society of Actuaries (SOA) is pleased to announce that it has signed a treaty with 13 other international actuarial organizations to establish the Chartered Enterprise Risk Analyst (CERA) as the globally recognized enterprise risk management (ERM) credential.

In making this announcement, Mike McLaughlin, SOA president, stated that this move is a significant endorsement by the global actuarial profession of the need for an international ERM credential. It sends a strong message to employers and candidates that the skill set of actuaries provides significant insight and risk management expertise, especially in this time of increased globalization.

“The adoption of the CERA as a globally recognized credential, and the respect that will gain from employers and clients, immediately strengthens the credential’s value for all CERA holders and will build the supply of actuaries ready to meet the worldwide demand for risk management expertise,” McLaughlin said. He added, “Since the recent G20 meetings in Pittsburgh, the concept of combining strong technical skills with professional standards of conduct has been gaining ground. This credential, and the discipline it represents, addresses that need directly.”

The launch of CERA as a global risk management designation was marked by the SOA’s signing of a multilateral treaty in Hyderabad, India during the meetings of the International Actuarial Association (IAA). The treaty was signed by 14 IAA member associations based in 12 countries, including many of the major world economies.

In the future, the designation will be awarded through qualified participating associations and will incorporate and adopt the name of the CERA credential currently issued by the SOA. It will recognize actuaries globally who meet stringent education requirements in ERM and are governed by a strong code of professional conduct.

Fred Rowley, chairman of the Global CERA Steering Group said, “The demand for highly qualified professionals in this field is growing rapidly as management and boards recognize the need for substantially improved risk management. Markets and regulators are demanding better and more informed decision making and risk controls.”

“The SOA CERA qualification has confirmed a strong demand for the qualification and provides a firm foundation of insights and experience for the new global designation,” Rowley said. “The signing of this treaty builds strongly on this demand through the adoption of an updated syllabus and agreements on the recognition of the participants’ education systems.”

McLaughlin added, “The technical standards of the qualification establish a benchmark for rigor and quality assurance. The syllabus is comprehensive and addresses the important challenges posed by the current financial pressures, across all major sectors. We are confident that it will satisfy the risk management needs of enterprises and the public they serve around the world.”

McLaughlin noted that the agreement includes a strong quality assurance program to ensure rigorous controls will protect the credential. The initial evaluation process, conducted by trained external reviewers, will include a review of participating associations’ processes to award the credential and a thorough review of the learning objectives, syllabus and learning materials on which each association’s award will be based. This initial process will be followed by an annual review, which will include testing processes, pass rates and assurance of quality processes.

All participating organizations will adopt a common branding approach that is based on the existing CERA branding strategy developed by the SOA. The SOA will be deeply involved in all aspects of managing this new relationship and the global expansion of CERA.

The new treaty does not alter or affect the process to membership in the SOA. Since the inception of the CERA by the SOA in 2007, individuals who have earned the CERA through SOA examinations have also qualified for SOA membership as an Associate of the Society of Actuaries (ASA), based on the fact that they have passed the requirements for SOA membership. However, individuals who qualify for the CERA credential through a non-SOA pathway under this treaty will not automatically qualify for membership in the SOA (nor will SOA members automatically qualify for membership in other participating associations). Individuals interested in becoming a member of the SOA would have to pass the appropriate SOA exams and other requirements of membership, just as they do today. The SOA will recognize other holders of the CERA credential, in much the same way it recognizes actuaries credentialed through other International Actuarial Association (IAA) organizations.

Frank Sabatini, past SOA Board member and SOA representative on the Global Steering Committee that developed the treaty, will be the SOA’s first board member of the new organization that will administer the global credential. “Frank has been instrumental in all facets of the development of the international credential treaty and I am very pleased he will continue to represent the SOA going forward,” McLaughlin said.

“I am not aware of any other professional credential that has been offered by multiple organizations, and we are proud that 13 other leading actuarial organizations recognize that the CERA represents the pinnacle of risk management expertise,” McLaughlin said. “Signing this treaty is an historic event that will significantly enhance our profession’s risk management footprint around the world.”

If you have questions about the global CERA credential, please send them to cera@soa.org. We’ll post those questions and answers at a later date. For more information about CERA, visit www.CERAnalyst.org.

The list of participating associations includes:

• The Institute of Actuaries of Australia (Australia)
• Canadian Institute of Actuaries / Institut Canadien des Actuaires (Canada)
• Deutsche Aktuarvereinigung e.V. (Germany)
• Institut des Actuaires (France)
• Israel Association of Actuaries (Israel)
• Institute of Actuaries of Japan (Japan)
• Colegio Nacional de Actuarios A.C. (Mexico)
• Het Actuarieel Genootschap (Netherlands)
• Actuarial Society of South Africa (South Africa)
• Svenska Aktuarieföreningen (Sweden)
• Faculty of Actuaries (United Kingdom)
• Institute of Actuaries (United Kingdom)
• Casualty Actuarial Society (USA)
• Society of Actuaries (USA)

The original press release can be accessed from the Society of Actuaries page.