May 11, 2010 0
The Canadian Institute of Actuaries (“CIA”) has released a second booklet in its ERM series. The first was titled, “Enterprise Risk Management: Should you be doing it?” The new booklet is titled, “Enterprise Risk Management: Who is doing it?”
You can get the copies in English and French here.
“Enterprise Risk Management: Who is doing it?” English version
“Enterprise Risk Management: Who is doing it?” French version
Feb 6, 2010 0
By Jean-Yves Rioux, FCIA
In the summer of 2009, the Enterprise Risk Management (ERM) Applications Committee of the Canadian Institute of Actuaries (CIA) asked members, who listed ERM as their primary or secondary area of practice, to participate in a Strengths, Weakness, Opportunities and Threats (SWOT) survey about actuaries and ERM. The results of the survey were compiled to form a consensus view related to the following:
Twenty-three percent of the 103 members who were solicited to participate responded to our survey. The members of the ERM Applications Committee reviewed the results and are confident that the responses can be used to develop promotional material for the profession, and to make recommendations on potential areas of development for actuaries.
The following four, open-ended questions were asked of those surveyed:
Nov 16, 2009 0
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.”
Nov 5, 2009 0
A 2008 White Paper, published by the CFO Magazine and written by Frank Edelblut, outlined the 7 Deadly Sins of ERM – Lack of a Clear Vision, Building Unnecessary Organization, Function and Process, Lack of Support from Leaders, Bottom-up Approach, Risk Confusion, Overly Complex Risk Assessment and Making ERM the Endgame. While most if not all of these sins sadly still take place within the enterprise, a whole year has passed since the publication and their amount is not decreasing, if not the opposite.
In true actuarial fashion we extended the upper limit on the sins to N and relied on the wisdom of the crowds, in particular on the INARM listserv and the LinkedIn Group. What followed is presented below.
ERM does not need introduction, although perhaps we flatter ourselves. While the abovementioned white paper credits the beginning of ERM to the Committee of Sponsoring Organizations (COSO) – Enterprise Risk Management – Integrated Framework, brought forward in 2004, or perhaps even further back to 1970’s, people are still unaware of the necessity of its implementation. Moreover, and sadly at that, the exposure of the actuaries as the prime candidates for the role is something to be desired. Just ask anyone in Europe what a CERA (Chartered Enterprise Risk Analyst) is!
Luckily, the Society of Actuaries (SOA) in the States, along with a slew of other bodies, is doing an excellent job at promoting CERA and the brand of actuaries as the best people for the job of a risk manager. There is even talk of 16 actuarial bodies working on agreement in principle regarding worldwide recognition of the designation, but again, it is too soon to tell.
Yes, the companies out there are implementing ERM, not as many as we would like to see, but it is a great start. However, just to start thinking about it and staff the risk management team is not enough. ERM is a mindset and should be prevalent in the whole institution. Below are some of the things you should not do in your quest to ERM nirvana:
Sep 9, 2009 0
In May 2008, Standard & Poor’s Ratings Services announced its intention to include enterprise risk management (ERM) assessments in ratings of nonfinancial companies (see “Standard & Poor’s To Apply Enterprise Risk Analysis To Corporate Ratings ,” published May 7, 2008, on RatingsDirect). Since the third quarter of last year, our analysts have begun to incorporate specific ERM discussions into their regular meetings with the companies we rate, focusing on risk management culture and strategic risk management as two universally applicable aspects of ERM.
Among other things, we’ve been reviewing risk management structures, the roles of staff responsible for risk management, internal and external communication, and risk management policies and metrics. Our analysts have explored managements’ views of the most consequential risks that their firms face, their likelihood of occurring, how these top risks are identified, monitored, and updated, and the influence of risk sensitivity on liability management and financing decisions.
The complete Progress Report is available erm-update-22-jul-09.
Jun 11, 2009 0
The Society of Actuaries (SOA) is pleased to announce that it is now offering its first professional development (PD) e-courses. These courses will allow members additional opportunities to grow their knowledge on a variety of important and valuable subjects, while earning continuing professional development (CPD) credit, from the convenience of their computers. Others may also take these e-courses for their own professional growth without earning CPD credit.
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