[Skip to content]

Sign up for our daily newsletter
The Actuary The magazine of the Institute & Faculty of Actuaries
.

Finance, Investment & Risk Management (FIRM) Board news

Risk management

We have received a good response to Paul Stanworth’s 21 December 2005 email to all fellows, highlights of which appear in ‘Risk is our business’. For readers who did not receive it, the email opened as follows:

‘Managing risk to create value is vital for firms in the financial and corporate sectors and many professions are represented in the key activity of risk management. Our profession has its roots in management of risk and, in common with actuaries worldwide, is committed to promoting what we can offer. I have volunteered to lead a new taskforce on behalf of our profession to drive the promotion and recognition of actuaries in the risk management space. In order to achieve this, I am seeking your support and assistance.

‘To set this initiative up, councils have endorsed a ‘manifesto’ for this task force based on four cornerstone beliefs:

  • All actuaries are risk managers now – The world understands risk and management of it, which is what actuaries have always been doing all along.
  • Risk management is much more than risk measurement – Value is created by taking some risks and avoiding others – it is active.
  • Follow the money: focus on firms – Banks, insurers, other financial firms, and other sectors spend vast sums on managing risk – we actuaries should clearly understand how and why.
  • Choose our niche, but not our tomb – We will find ourselves working alongside professionals from a range of backgrounds – we all have distinct skills to bring to bear.’

Risk networking evening

We shall be holding a ‘Risk’ networking evening at Staple Inn Hall on Monday 13 February 2006: subject to space, all members and colleagues will be welcome, but will need to book in advance (details below). We shall be considering the question ‘What do actuaries need to do to go beyond simply being qualified actuaries and become financial service risk managers?’

John CR Hele, the general manager and chief insurance risk officer, ING Group, and currently responsible for global insurance risk management, in addition to being group actuary, will be our speaker. John’s theme will be: migrating actuaries to be proactive risk managers and will touch upon such issues as accountability for risk, spurious measurement, consistency with modern financial theory, the difference between measurement and management, and how risk management fits in with a wider non-actuarial decision-making framework of financial services (including banks).

There will no doubt be the opportunity to put questions to John, including how actuaries should evolve so as to be effective in the risk management space of the future. Members may also be interested in learning more on, for example, ING’s ideas on risk capital, and on the European CRO Forum, of which John is chairman for 2006. The forum is very active in the consultations to the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) regarding Solvency II.

If you would like to attend the event, please notify Fiona Hills at fiona.hills@actuaries.org.uk.