Th Ch The Chartered Enterprise Risk t d E t i Ri k Analyst (CERA) - - PowerPoint PPT Presentation

Th Ch t d E t i Ri k The Chartered Enterprise Risk Analyst (CERA) Designation a yst (C ) es g at o

Panelists: John J. Kollar, FCAS, MAAA, CPCU CAS Past President CAS Rep. on Global CERA Board Kevin G. Dickson, FCAS, MAAA, CERA VP‐ERM, CAS Executive Council Moderator: Abbe Sohne Bensimon, FCAS, MAAA C‐Counsel Consultant, EMB

CAS Centennial Goal (2007) CAS Centennial Goal (2007) (second sentence)

CAS members will advance their expertise in pricing, reserving and capital modeling, and leverage their skills in risk analysis to become recognized as experts in the evaluation of enterprise risks, particularly for the property and casualty insurance industry.

CAS ERM Initiatives

• Joint Risk Management Section with SOA

ERM S i ith SOA PRMIA ERM II

• ERM Symposium with SOA, PRMIA, ERM‐II,

CIA, Mexican actuarial societies

• VP – ERM (10 year duration)
• ERM Vision
• Risk Management Committee of the Board to

manage CAS risks and opportunities g pp

• ERM Committee and other committees
• CERA Treaty Signatory
• CERA Treaty Signatory
• 2011 Syllabus

What is CERA?

• Chartered Enterprise Risk Analyst

– US (SOA CAS) and Germany US (SOA, CAS) and Germany

• Chartered Enterprise Risk Actuary

UK (I tit t & F lt f A t i ) – UK (Institute & Faculty of Actuaries)

• Certified Enterprise Risk Actuary
• Certified Enterprise Risk Analyst

CERA – the brand name always

CERA Definition CERA Definition

Global actuarial designation for enterprise risk Global actuarial designation for enterprise risk management (ERM)

• Actuarial associations agreed on one global
• Actuarial associations agreed on one global

actuarial ERM designation.

• A CERA must be a qualified actuary according to

A CERA must be a qualified actuary according to the International Actuarial Association (IAA).

• A CERA should leverage traditional actuarial skills

A CERA should leverage traditional actuarial skills in the management of risk.

CERA Treaty CERA Treaty

• Signed by 14 actuarial associations in

Signed by 14 actuarial associations in November of 2009 in India

USA (CAS & SOA) Canada (CIA) USA (CAS & SOA) Canada (CIA) Mexico UK (Institute & Faculty) France Germany France Germany Sweden Netherlands I l J Israel Japan South Africa Australia

Why Sign the Treaty?

To achieve the Centennial Goal

• Provide increased employment opportunities

Provide increased employment opportunities for CAS members in ERM for P&C and other industries in the US, Canada other countries. industries in the US, Canada other countries.

• Advance the CAS ERM role as a natural

extension of traditional P&C actuarial work extension of traditional P&C actuarial work.

• Advance the CAS international role and

th b i thereby improve

– basic and continuing education and – research.

CERA Treaty Preamble CERA Treaty Preamble

• Recognize the importance of ERM to the

Recognize the importance of ERM to the management of future risk and uncertainty.

• Note that the management of future risk and
• Note that the management of future risk and

uncertainty is a principle actuarial objective. A i f l b li i f i

• Are conscious of globalization of enterprise

and professional skills and knowledge.

• Facilitate free international movement and

recognition of skills of actuaries.

CERA Treaty Preamble CERA Treaty Preamble

• Will lead to a more capable robust and

Will lead to a more capable, robust and influential actuarial profession.

• Facilitate the growth and spread of the actuarial
• Facilitate the growth and spread of the actuarial

profession in ERM. R i SOA ff bli h d

• Recognize SOA efforts to establish and promote

the CERA and their willingness to share the CERA i h h i l i i CERA with other actuarial associations.

• Note the Statement of Intent for a global ERM

designation signed in Ireland in 2007.

Key CERA Treaty Provisions Key CERA Treaty Provisions

• Treaty Signatory (Acceding Party) – how to

Treaty Signatory (Acceding Party) how to become one?

– complete application – complete application – is a Full Member Association of the IAA raise the bar on actuarial education – raise the bar on actuarial education – satisfy administrative requirements T t B d – Treaty Board approves

Key CERA Treaty Provisions

• Award Signatory – how to become one?

– complete application providing evidence that it p pp p g

• can satisfy all treaty requirements
• has taken all administrative steps (IP due diligence)
• provide education programs directly or indirectly

through an Approved Educational Provider h CPD

• has a CPD program
• has a review and appeal process for a CERA candidate
• is a Full Member Association of the IAA

is a Full Member Association of the IAA

– Review Panel (RP) robustly reviews the application and makes recommendation to the Treaty Board. and makes recommendation to the Treaty Board. – Treaty Board reviews and acts on RP report.

Key CERA Treaty Provisions Key CERA Treaty Provisions

• Award Signatory ‐ key obligations

Award Signatory key obligations

– maintain approved syllabus provide a CERA membership list with contact info – provide a CERA membership list with contact info to the CGA for CGA website – award CERA on behalf of the CGA – award CERA on behalf of the CGA – recognize CERA’s from other associations agree that the CERA is intellectual property (IP) – agree that the CERA is intellectual property (IP) – agree to promote the CERA th t i i l RP i – pass the triennial RP review

Key CERA Treaty Provisions y y

• Basis for Award of Treaty Designation to an

individual applicant

– satisfy IAA requirements for a Fully Qualified Actuary – agree to perpetually be subject to the code of ethics/professional conduct and disciplinary scheme of the Award Signatory h d i d h ERM S ll b – taught and examined on the ERM Syllabus – authorize others to access his/her disciplinary d record

Key CERA Treaty Provisions Key CERA Treaty Provisions

• Leader and Experienced Practitioners

Leader and Experienced Practitioners

– experience demonstrates a level of knowledge and understanding comparable to other CERA’s and understanding comparable to other CERAs – CERA Board may choose to approve an application based on certain criteria and conditions based on certain criteria and conditions

• experience requirements
• any alternative educational requirements
• time period for granting such awards
• maximum number of awards
• other(?)

CAS CERA Application Status CAS CERA Application Status

• Final syllabus material sent to Review Panel

Final syllabus material sent to Review Panel

• ERM seminar description to Review Panel

“ ” & 9 (20 ll b ) ill

• New “ERM” exams 7 & 9 (2011 syllabus) will

be sent to Review Panel in early 2011

• Bloom’s Taxonomy (CERA Treaty)

Becoming CERA Through the CAS

(AS CURRENTLY PROPOSED) Exam Route

– Currently

• Associates – Part 8 + CPCU Exam + ERM Seminar
• Fellows – CPCU Exam + ERM Seminar

– Under 2011 Exam Structure

• Associateship exams + New Exams 7 & 9 + CPCU Exam

Experienced Practitioner Pathway (EPP)

– Apply, demonstrating “substantial ERM experience” at senior level – Attend ERM Seminar (different from above)

CERA Award Signatory Progress g y g

• SOA continues to award the CERA.

– Review Panel will conduct an assessment in 2011.

• Institute & Faculty (UK) was approved as an

Award Signatory in July (ST9 exam).

• Institute of Actuaries in Australia was

approved as an Award Signatory in August (ST9 exam – “me too” approach). ( pp )

• CAS, South Africa and Netherlands are

pending pending.

Key CERA Treaty Provisions

• Treaty Board – representative of each Treaty

Signatory including the CAS

– implements Treaty provisions – meets regularly – assigns specific functions to committees for development of action plans, etc.

• Review Panel – representative(s) of each

Treaty Signatory including the CAS (for now) y g y g ( )

– reviews application to be an Award Signatory and makes a recommendation to the Treaty Board y – conducts periodic reviews of Award Signatories

Key CERA Treaty Provisions y y

• CERA Global Association (CGA)

– purpose:

• facilitate the global growth, spread and recognition of

actuaries in ERM actuaries in ERM

• ensure a high level of expertise, quality and integrity in

the practice of ERM by actuaries p y

– owner of CERA name (Intellectual Property)

• transferred from SOA

– CGA Board

• CAS representative
• meets as needed

CERA Website

• Launched in October of 2010

f

• Content of interest to

– CERA’s – actuaries interested in becoming CERA’s – actuarial associations interested in signing the CERA Treaty – employers who wish to understand

• the benefits of employing CERA’s
• the skills and knowledge that CERA’s have

th k th t CERA’ bl t f

• the work that CERA’s are able to perform

CERA Website CERA Website

• Content

Content

– links to actuarial associations learning objectives – learning objectives – representative syllabus readings f th di d t i l – further reading and materials – interactive map identifying CERA Treaty Signatories Signatories – “meet a CERA” function li t f CERA’ ith t t i f – list of CERA’s with contact info

International Actuarial Association (IAA) – ERM Role

• CERA is not an official IAA initiative

CERA is not an official IAA initiative.

• IAA ERM Action Plan through Enterprise &

Financial Risks Committee (EFRC) and Actuarial Financial Risks Committee (EFRC) and Actuarial Approach for FInancial Risks Section (AFIR)

t th l f t i i ERM – promote the role of actuaries in ERM – support the globalization of CERA d f l b ll – provide ERM CPD for actuaries globally – support and direct ERM research