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Conference preview: Managing liquidity

Chairman’s preview

Recent dramatic events in global financial markets have highlighted the importance of financing and investment risk in the context of overall enterprise risk management (ERM). The key role played by both funding liquidity and market liquidity has become clear. Many of the financial institutions advised by actuaries will be looking to generate returns by taking advantage of liquidity conditions at the same time as managing their liquidity risk.

Life, general insurance, pensions — even if you think you belong in one of these practice areas, the last year has surely shown the crucial relevance of financial markets and the necessity for effective risk management. The conference once again spans ERM and finance and investment (F&I), and is jointly sponsored by the ERM and F&I practice areas, as indicated by the change in name to ‘Risk and Investment’. Many sessions should be of interest to all attendees including all the plenaries, while some of the breakout sessions may be of particular interest to those working in specific fields.

The programme combines leading-edge technical content with more general sessions addressing issues faced by a wide spectrum of actuaries. Looking through the outline programme (right), breakout sessions A1 and A2 should be of particular interest to senior actuaries, general insurance specialists will want to head for sessions D2 and E2, and life actuaries shouldn’t miss sessions A2 and C1. In the context of the current climate, I also look forward with particular anticipation to the discussion panels on hot topics such as plenaries 4, 6 and 7.

One of the highlights will be keynote speaker Paul Wilmott’s ‘Actuaries versus Quants’ address. Paul is the proprietor of the popular quantitative finance community website www.wilmott.com and will need no introduction to many participants. We start with our other keynote speaker Stephen Carver, who will speak on a risk management case study entitled ‘The Davy Case’. Unusually for an academic — he is rated one of the top three lecturers at Cranfield — Stephen has spent most of his working life in real business and still runs his own highly successful project management company.

In order to get off to a running start for 2010, we will be aiming to get participants for potential working parties together over lunch on the second day of the conference. If you have any special topics you would like to see researched over the coming year, bring your suggestions along to Brighton or e-mail me in advance of the conference at colin.wilson@gad.gov.uk

A microsite giving full details of this year’s Risk & Investment Conference can be found at http://www.actuaries.org.uk/events/RI2009

Colin Wilson is a member of the ERM Practice Executive Committee and chairman of the Risk and Investment Conference Organising Committee

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Keynote speakers
Actuaries versus quants
Paul Wilmott, financial consultant

The Davy Case
Stephen Carver, Cranfield School of Management

Plenaries
1: Opening address and welcome
Colin Wilson, Barrie & Hibbert
2: Lessons from the credit and liquidity crunch
Brandon Horwitz, FSA and Craig Gillespie, Watson Wyatt
3: Negotiation skills
4: Hot topics — Regulatory developments
Panel chair: Seamus Creedon, KPMG
5: Update on Profession’s risk management strategy
Ronnie Bowie, Faculty president
6: Hot topics — What next for pension fund risk management?
Panel chair: Tom Durkin, Lane Clark & Peacock
7: Hot topics — Implementation lessons learned from the crisis
Panel chair: Paul Stanworth, Merrill Lynch

Breakout sessions
A1: Governance and risk management for UK insurance companies
Shayne Deighton, Just Retirement
A2: Implications of divergence between gilt and swap curves
Patrick Rowland, KPMG
B1: Update on alternative assets
Nick Silver, Silver Actuarial
B2: Financial risk and insurer capital assessment
Paul Fulcher, UBS
C1: Variable annuities
James Maher, Nexgen
C2: Modelling correlations and dependencies in economic capital models
Richard Shaw, Independent
D1: Stress tests for investment risks
Ralph Frankland, Norwich Union
D2: ERM — Shareholder perspective 1: Modelling and managing risk to the franchise value
David Ingram, Willis
E1: Modelling property values
Simon Jones, P-Solve
E2: ERM — Shareholder perspective 2: Systematic risk and its disclosure
Andrew Hitchcox, Kiln