Risk management is an increasingly important part of the financial service industry and is an area in which actuaries can play a very active role
Managing risk has many rewards
IN an increasingly complex financial world, risk management has become a by-word – and actuaries, already the guardians of risk in the life insurance and pensions industry, believe that they have a wider role to play. That’s why the Actuarial Profession –
the merged body created from the former Faculty of Actuaries in Scotland and the Institute of Actuaries – has launched the Chartered Enterprise Risk Actuary (CERA) qualification.
David Martin, Leader of the Actuarial
Profession’s Scottish Board, believes it is one of the most exciting things to happen in the profession for decades.
David would like to see a future where
actuaries are appointed as Chief Risk Officers to all manner of organisations. However, the industry has to learn to walk
before it can run. He said: “We need to start from where we are – in financial services. This is a industry where we have been managing financial risks for decades, but the new techniques we have developed are, I believe, capable of adoption more widely.” The Scottish Board is keen to promote the risk management agenda in academia also, and is looking to develop an Actuarial Research Centre to fund PhD students in risk management science.
We should seek to expand the market for our skills and expertise
He explained: “Life Assurance has been the backbone of our profession for more than 150 years, and in the last half-century pension scheme work has also become an enormously important strand. “However, while actuarial skills are in high demand today to deal with the new raft of regulations, we should seek to expand the market for our skills and expertise.” Risk management is seen by many in the
industry as the area with the greatest potential and the profession has been devoting a great deal of energy here. It’s a natural development as actuaries,
by nature, are problem solvers through their interpretation of statistical data and knowledge of social and economic systems.
Scotland is already renowned for the quality of its actuarial graduates and producing world- leading research in actuarial mathematics from Heriot-Watt University in Edinburgh. This centre of excellence has been further
strengthened by the formation of Scottish Financial Risk Academy which is a collaboration between academia and industry to encourage research into actuarial mathematics and provide a forum for people with an interest in the sector to discuss research and its application in the real world.
David added: “It is hoped that payments
from our Endowment Fund will be ‘seed money’ and further research funds will be sought to support the Actuarial Research Centre which will be a real asset to the profession in
David Martin of the Actuarial Profession
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