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WWSituation
08-18-2005, 12:11 PM
I posted this in the pre-section - it is interesting to hear the praises and criticisms of non-actuaries in this field. I see the same stigmas where I work in asset management of actuaries, but it really validates the effort the SOA has waged in the area

Here's some content that would be of use to an ERM focused actuary

http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-08-04-11259.html

Excerpt:

As John Roberts, the risk manager of BC Ferries, in Vancouver , Canada wrote recently to me, “ERM is too broad to belong to any one discipline.” He added, “Enough of this turf war!” Roberts is right. What provoked both of us was a recent article by Larry Quinn, “Actuaries and Risk Management,” where he cited the arguments by some in the actuarial profession that they are best suited to lead ERM.

I know many actuaries and some of them could easily serve as a CRO, not only for an insurance company, where most are employed, but for other financial and non-financial organizations.

But actuaries must overcome three limitations. The first is the public view of their work and experience. The old adage that an actuary drives a car down the road by looking through the rearview mirror has more validity that many imagine.

Yes, the past often replicates itself, but real “risk,” the chance of something unexpected occurring, is seldom susceptible to rearview analysis. The public, perhaps unfairly, pigeonholes actuaries in the role of cruncher of old numbers.

campbell
08-19-2005, 03:01 PM
The "cruncher of old numbers" is well-taken. That said, I believe the Academy is doing well in looking at innovative ways to consider risk.

I know I sound like a broken record, but I believe the principles-based rules for capital and reserving for variable life products is a good step.

I've been lucky in that almost all the work I've done since starting in this profession two years ago has been looking to the future, as opposed to the past. This C3 Phase II (RBC for variable annuities with guarantees) project is just the latest.

There will always be room for looking back, and doing financial reporting -- but I think it's a good thing for actuaries to do a little more looking ahead.