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The Actuary The magazine of the Institute & Faculty of Actuaries

CERA application approved

The UK Actuarial Profession won formal approval last month to award the new Chartered Enterprise Risk Actuary (CERA) qualification for actuaries, with unanimous support from the CERA Treaty Board. The Profession’s ST9 exam will be the basis for CERA status awarded by the UK Profession, and could also be used in the future by other national actuarial associations.

Ronnie Bowie, incoming president of the Institute and Faculty of Actuaries, said: “The events of the last two years have shown the pressing need for a true understanding of complex financial risks. Actuaries, with their understanding of financial risk and their professional commitment to the public interest, are well placed to help make the financial world a safer place. This qualification demonstrates our commitment to creating the gold standard for risk management.”

Malcolm Kemp, chairman of the Profession’s Enterprise Risk Management group, said: “We are delighted to have received approval to award the CERA qualification. It will cement the reputation of appropriately qualified members of the UK Actuarial Profession in the field of risk management. We hope that CERA/ST9 will become the benchmark qualification for individuals wishing to excel in this area. Through this initiative we can help to promote best practice risk management approaches across the financial services sector.”

The qualification is designed to equip actuaries to fulfil roles such as chief risk officer. Importantly for complex financial institutions, it covers individual risk categories and how they interact. In preparation for Solvency II and Basel III, the qualification requires understanding of how to measure, model and manage risks and how economic capital can be best applied.

CERA was first developed in the US, with the national associations of other countries later joining to create the CERA Treaty Board in November 2009. The 14 associations currently involved are: Institute of Actuaries of Australia; Canadian Institute of Actuaries; Institute of Actuaries of France; German Actuarial Society; Israel Association of Actuaries; Institute of Actuaries of Japan; Mexican Association of Actuaries; Actuarial Society of the Netherlands; Actuarial Society of South Africa; Swedish Society of Actuaries; Faculty of Actuaries, UK; Institute of Actuaries, UK; Casualty Actuary Society, US; and the Society of Actuaries, US.