Market for ERM FSAs and CERAs?

[Jo.M.]

What companies would typically hire FSAs that followed the ERM track and CERAs? Would the FSA credential be recognized to its just value?

On another note, would an 'ERM' FSA be devalued compared to a 'Life' FSA if he worked for a life insurance company?

[The Professional]

IMO work experience will far outweigh exam track.

[WWSituation]

What companies would typically hire FSAs that followed the ERM track and CERAs? Would the FSA credential be recognized to its just value?

On another note, would an 'ERM' FSA be devalued compared to a 'Life' FSA if he worked for a life insurance company?

If you want to get into the market risk management track and you are a Life FSA, you will have a very hard time - CERA or not. However, if you have the CERA, and the department is desperately understaffed, they may look you over - but CFA would be worth several times more than CERA.

Actuary with CFA = knowledgable and experienced in investments
Actuary with CERA = just another actuary who minored in ERM

ERM knowledge is not very useful or valuable to someone who isn't in a position to act on that knowledge. It is truly a leadership position and you can't really make an impact until you have really cut your teeth on the underlying exposure you are managing. Having a MFE is really the best way to get in and contribute and study your exposure - then after many years of experience, CERA may very well provide a context for leadership - I can't really say.

[campbell]

Isn't CFA just asset-related? I haven't checked out the reading lists lately (sometimes I get bouts of looking into doing the CFA exams)

Thing with CERA is that it is newly-minted, and so there will be no reputation associated with it for quite some time. This is partly why the SOA has given the designation to some actuaries who have been highly visible in risk management issues, as this can help build up a reputation for the designation.

Consider that both of the candidates for president elect of the SOA are CERAs -- they are actively working to increase the visibility of the actuarial profession in general with regards to risk management, and they both are actively promoting the CERA credential. It will take some years for the credential to take hold.

On the other hand, the CFA has been around for a long time, and is more widely-known in the investment business in general.

So I'd say in the short term, the CFA may get you more positive results, but in the long term it may be different.

[Jo.M.]

Thank you for your replies.

An addendum to my initial question:
What if I achieve the FSA credential by taking the ERM/Finance track (getting the CERA designation at the same time), and decide later on that I would rather pursue a career in life insurance. Would prospective employers view my FSA designation differently because I did not complete the DP and CSP exams? Would they urge me to complete the latter exams in order to fully recognize my FSA credential?
i.e. what is the risk that an ERM/Finance FSA designation be worth less than other FSA designations if an actuary doesn't end up working in a risk management area?

[campbell]

FWIW, I am in a life insurance company, and I got my FSA in the investments track. I don't think they care whether I did ILA-DP/CSP (or, rather, 8I and ILA-CSP) or the investments exams.

After a certain point, your work experience is going to matter more than which exams you took.

[DW Simpson]

After a certain point, your work experience is going to matter more than which exams you took.

This.

[life_actuary_student]

Thank you for your replies.

An addendum to my initial question:
What if I achieve the FSA credential by taking the ERM/Finance track (getting the CERA designation at the same time), and decide later on that I would rather pursue a career in life insurance. Would prospective employers view my FSA designation differently because I did not complete the DP and CSP exams? Would they urge me to complete the latter exams in order to fully recognize my FSA credential?
i.e. what is the risk that an ERM/Finance FSA designation be worth less than other FSA designations if an actuary doesn't end up working in a risk management area?


I think this is an interesting question, especially if one believes future reserving/pricing is going to be principle-based. Wouldn't much of the existing material for the FSA life insurance tract be made obsolete?

FWIW, my intention is to follow the Finance tract.

[campbell]

The FSA exams' syllabuses change all the time.

I see that the ILA-DP syllabus has a lot of readings published in 2003, 2005, etc. and many of those address principles-based approaches, for example, and obviously that could not have been on the syllabus of 8I in 2000.