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November 6, 2007 - The Society of Actuaries Partners with Leading Actuaries to Help Businesses Deliver on the Promise of Enterprise Risk Management

August 1, 2007 - The Society of Actuaries Introduces New Chartered Enterprise Risk Analyst Credential, Reflecting Most Rigorous Enterprise Risk Management Training Available

Learn the Facts@

Meet the Pioneers@

Discussion with ERM Experts@

http://www.redwoodeditor.com/content/SocietyofActuaries/cera/video.swf

Biographies@

Sim Segal@

Sim Segal, FSA, CERA, MAAA
Managing Director
Aon Global Risk Consulting, Aon Corporation

Sim Segal is a managing director in the Aon Global Risk Consulting division of Aon Corporation, where he leads the enterprise risk management (ERM) practice for financial services companies in the United States and across all markets in the Eastern region. With more than 20 years experience, Sim has a range of expertise, including ERM, capital management, Sarbanes-Oxley, value-based management and stochastic retail financial planning.

Sim’s experience includes five years at another consulting firm, where he co-led the ERM practice for insurance companies in the United States, and led the development of that firm’s insurance ERM point-of-view and modeling approach and tools. Sim’s experience includes 16 years at MetLife, where he was a key player in the first successful implementation of economic capital by a U.S. insurer, assisting in its integration into key company processes, including strategic planning, capital planning and pricing. Sim previously led MetLife’s IPO eligibility team and helped establish a corporate reinsurance unit. His experience includes a full range of insurance products, including retail and institutional life, health, annuity and property-casualty products.

Sim is a frequent speaker at professional conferences and has published numerous articles in industry publications. He currently serves as a member of the Society of Actuaries (SOA) Board of Governors, the SOA Leadership Development Committee, the SOA Risk Assessment Task Force and the Continuing Education Committee of the Actuarial Society of Greater New York (ASNY). Sim has previously served as president of ASNY, as chairman of the SOA Management & Personal Development Section and as a lead actuary in the Actuarial Foundation’s Advancing Student Achievement program.

Sim graduated summa cum laude from Wayne State University, with a B.A. in mathematics. In 1995, he attained the designation of Fellow of the Society of Actuaries (FSA). He is a Chartered Enterprise Risk Analyst (CERA) and a Member of the American Academy of Actuaries (MAAA).

Max Rudolph@

Max J. Rudolph, FSA, CERA, CFA, MAAA
Founder, Actuary
Rudolph Financial Consulting, LLC

Max J. Rudolph is an actuary with Rudolph Financial Consulting (RFC), LLC. RFC provides strategic planning, enterprise risk management, asset liability management, pandemic planning, scenario planning and peer review to institutional clients. He has over twenty years of experience in the insurance industry.

Previously, Max was a vice president and actuary leading the Financial Risk Management unit of Mutual of Omaha Insurance Company. He was responsible for managing balance sheet risks such as asset liability management, liquidity and capital. Max also was heavily involved in managing account value products, along with valuation, financial projections and pricing of various group and individual life, health and annuity products.

Max is currently a member of the Society of Actuaries (SOA) Board of Governors, and previously served as chair of the SOA Investment Section and the ERM Strategy Task Force. Max also served on the Influenza Project Oversight Group as well as the Society of Actuaries/Casualty Actuarial Society/PRIMA ERM Symposium Organizing Committee.

Max is a Fellow of the Society of Actuaries (FSA), a Chartered Enterprise Risk Analyst (CERA), a CFA charterholder and a Member of the American Academy of Actuaries (MAAA).

Mike McLaughlin@

S. Michael McLaughlin, FSA, CERA, MAA, FIA
Global Leader, A&IS
Deloitte Consulting LLP

S. Michael McLaughlin leads the U.S. life actuarial practice for Deloitte Consulting. Michael, who has led actuarial practices for more than 20 years, also oversees the coordination of the actuarial practices of Deloitte Touche Tohmatsu’s (DTT) member firms.

Prior to joining Deloitte Consulting, Michael served as executive vice president and chief actuary of AXA Financial Inc. There, he managed all actuarial work that supported product pricing, valuation, earnings analysis and corporate projections. Additionally, he was responsible for underwriting, reinsurance, product filing and facilitating overall risk management.

Before joining AXA, Michael served as the national director of a Big Four organization’s life/health insurance and actuarial services practice for 12 years. In his role there, he was a member of the global actuarial leadership team and was the project lead for numerous financial services industry clients, specializing in embedded value, merger and acquisition due diligence and best practice reviews.

Active in industry groups, Michael is a member of the Society of Actuaries’ Board of Governors and a past chairperson of the Financial Reporting Section Council. He is also a Fellow of the Institute of Actuaries (FIA), a Fellow of the Society of Actuaries (FSA), a Chartered Enterprise Risk Analyst (CERA) and a Member of the American Academy of Actuaries (MAAA).

Doug Brooks@

Douglas W. Brooks, FSA, CERA, FCIA, MAAA
Sr. Vice-President & Chief Financial Officer
Equitable Life of Canada

Douglas W. Brooks is senior vice-president and chief financial officer of Equitable Life of Canada.

Upon graduation from the University of Waterloo, Doug joined Mutual Life (later Clarica) and the majority of his time was spent in the Individual Division, with responsibilities including product design, pricing, valuation and financial analysis. In 1997, he became chief actuary, overseeing the actuarial aspects of the company's demutualization, and having significant involvement in a number of acquisitions. In 2000, he was appointed senior vice-president and chief actuary, and added responsibilities for capital management, risk management and internal audit. In June 2002, Doug was appointed vice-president and chief risk officer at Sun Life upon the acquisition of Clarica by Sun Life. He joined the Equitable Life of Canada in September 2006.

Doug has had a number of industry involvements, including the CLHIA committee on solvency and capital and within the Canadian Institute of Actuaries (CIA) as a member of the Committee on the Role of the Appointed Actuary and member of the CIA Board of Directors. He is also a past chairman of the CIA Life Practice Committee, the CIA Committee on Risk Management and Capital Requirements and a committee on source of earnings disclosure.

Doug graduated from the University of Waterloo in mathematics and actuarial science. Doug has been a member, and is currently the chair of the Council of the Joint Risk Management Section of the Society of Actuaries, Casualty Actuarial Society and CIA. Doug is a Fellow of the Society of Actuaries (FSA), a Chartered Enterprise Risk Analyst (CERA), a Fellow of the Canadian Institute of Actuaries (FCIA) and a Member of the American Academy of Actuaries (MAAA).

ERM Fact Sheet@

ENTERPRISE RISK MANAGEMENT (ERM) FACT SHEET

What is Enterprise Risk Management?

Enterprise risk management (ERM) is the process of coordinated risk management that places a greater emphasis on cooperation among departments to manage the organization’s full range of risks as a whole. ERM offers a framework for effectively managing uncertainty, responding to risk and harnessing opportunities as they arise.

Unlike previous risk management practices, the concept of ERM embodies the notion that risk analysis cuts across the entire organization. The goal of ERM is to better understand the shock resistance of the enterprise to its key risks and to better manage enterprise risk exposure to the level desired by senior management.

History of ERM

The concept of a holistic approach of risk management traces its roots to the early 1970s when Gustav Hamilton of Sweden’s Statsforetag proposed the “risk management circle” to describe the interaction of all elements in the risk management process (assessment, control, financing and communication).
In the 20th century, risk managers were primarily responsible for managing "pure" risks through the purchase of insurance, though the concept of risk management soon became associated with financial risk management with the use of derivative financial products.
There are several checkpoints that have driven the need for enterprise risk management. This includes an increase in:

------------ - Greater transparency

------------ - Financial disclosures with more strict reporting and control
------------ - requirements

------------ - Security and technology issues

------------ - Business continuity and disaster preparedness in a post-9/11 world

------------ - Focus from rating agencies

------------ - Regulatory compliance

------------ - Globalization in a continuously competitive environment

Defining ERM

Risk Management – the discipline by which an organization identifies, assesses, controls, measures and monitors various risks and opportunities for the purpose of achieving the entity’s strategic and financial objectives.
Capital Management – the discipline by which capital is deployed within an organization based on management tolerance for risk, economic constraints, and performance objectives for the organization as a whole, while still satisfying regulatory and rating agency requirements.
Financial Management – the discipline by which an organization evaluates its performance utilizing risk-adjusted measures that reflect returns, capital consumption and volatility on an enterprise and individual business unit basis.
Risk Appetite – the level of aggregate risk that an organization can undertake and successfully manage over an extended period of time. According to Basel, risk appetite is the broad-based amount of risk an organization or other entity is willing to accept in pursuit of its mission or vision. Enterprise risk management enables an organization to determine what level of the risk it chooses to accept as it seeks to build shareholder value.
Operational Risks – the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events.
Strategic Risks – potential damage to reputation, competition, demographic trends, technological innovation, capital availability and regulatory trends.

Demonstrating ERM and the Role of Actuaries

No matter how well planned and executed, risk management procedures cannot always guarantee results. Nevertheless, using the enterprise risk management framework can increase an organization’s and its shareholders’ confidence that they will achieve their objectives.
Enterprise risk management offers a number of benefits:

------------ - Aligns risk appetite and corporate strategy

------------ - Links growth, risk and returns

------------ - Improves risk responses

------------ - Reduces operational surprises and losses

------------ - Manages enterprise-wide risks

------------ - Recognizes and acts upon opportunities

------------ - Deploys resources effectively

With the increasingly complex and fast-changing business environment, organizations are seeking risk management professionals to join their teams. As these new roles in enterprise risk management continue to grow, actuaries are becoming leaders in the practice, which takes a 360-degree view of an organization's risk profile.
To meet this growing need, the Society of Actuaries has developed the international credential Chartered Enterprise Risk Analyst (CERA), encompassing the most comprehensive and rigorous demonstration available of enterprise risk management. This marks the first new credential in 58 years from the SOA, and also signifies an evolution of the profession.
The CERA-credentialed professional possesses the unique ability to use both quantitative and qualitative methods to anticipate, identify and optimize risk, leading to well-defined strategic actions for organizations. For more information, visit www.CERAnalyst.org.

Implementing the ERM Framework

There is a growing need from organizations to permanently link their risks across their business units and adopt a more comprehensive framework.
Organizations have traditionally used the "silo" approach to risk management that looks at the individual performance of a business unit instead of a more holistic approach that looks at the long-term impact on risk and capital needs of the entire enterprise.
Organizations, especially those in insurance, have long identified and quantified risks, though this has commonly been done in a vacuum that separates risk management, capital management, and financial management.
Therefore, in order to effectively allocate resources, satisfy all stakeholder demands, manage the diverse risks, allocate capital to those areas that add value, and measure the organization’s performance, it is critical that the “silos” be permanently linked.
Full linkage -- the integration of risk, capital and financial management -- allows for a continuous recognition of the array of risks facing an organization, their individual and collective impact on shareholder value, leading to well-defined strategic actions.

About Actuaries
Actuaries bring a complex future into focus by applying unique insight to risk and opportunity. Known for their comprehensive approach, actuaries enable smart, more confident decisions.

About Society of Actuaries
The Society of Actuaries (SOA) is an educational, research and professional organization dedicated to serving the public and its members. The SOA’s vision is for actuaries to be recognized as the leading professionals in the modeling and management of financial risk and contingent events. The SOA’s mission is to advance actuarial knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions for financial, business and societal problems involving uncertain future events. To learn more, visit www.soa.org.

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CERA Facts Sheet@

CHARTERED ENTERPRISE RISK ANALYST (CERA) FACT SHEET

What is the Chartered Enterprise Risk Analyst Credential?

The Chartered Enterprise Risk Analyst (CERA) is a new, international credential encompassing the most comprehensive and rigorous demonstration of enterprise risk management (ERM) available. The CERA credential reflects the actuary's evolution -- from centuries of helping the world understand risk to today's broader risk management and leadership positions.

The CERA credential is the first new professional credential developed by the Society of Actuaries (SOA) since 1949. The CERA designation stems from the same rigorous process through which actuaries earn their credentials. The SOA's existing credentials include the Fellow of the Society of Actuaries (FSA) and the Associate of the Society of Actuaries (ASA).

As new roles in enterprise risk management continue to grow, actuaries are becoming leaders in the practice, which takes a 360-degree view of an organization's risk profile. CERAs are trained to apply both qualitative and quantitative insights to risk management and are qualified for such positions as risk analyst, risk manager and chief risk officer.

Impact of CERA on Businesses

The SOA has launched the CERA credential in response to the business world's increasing reliance on professionals who are best equipped to convert risk into opportunity.
According to research conducted by the SOA in the past few years, the recognition of actuarial credentials was very high among employers in insurance, reinsurance and consulting markets.
Because of their rigorous training through the credentialing process, CERAs' training does not stop with mathematics and financial engineering. Instead, CERAs are trained to model future events by converting data into information that leads to strategic decisions.
Businesses that rely on CERAs can make smarter, more confident decisions related to complex financial challenges affecting business and society.
In addition to insurance and benefits, actuaries are increasingly working in the broader financial services market and energy, transportation, manufacturing and healthcare industries, helping identify, measure and manage risks and opportunities within complex, risk-bearing enterprises.

CERA Curriculum

On average, professionals spend 3-4 years becoming credentialed with the CERA.
To earn the CERA requires successfully completing five exams, an e-learning module and Validation by Educational Experience for Economics, as well as participation in an Associateship Professionalism Course. The curriculum was designed to help prepare for leadership in the identification, measurement and management of risk within complex, risk-bearing enterprises.

The curriculum includes the topics of:

Probability
Financial Mathematics
Financial Economics
Micro and Macro Economics
Construction of Actuarial Models
Advanced Finance and Enterprise Risk Management
Financial Reporting and Operational Risk
Professionalism

To learn more visit www.CERAnalyst.org.

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Contact Us@

Michael Nowak
GolinHarris
312.729.4346
mnowak@golinharris.com

Kim McKeown
Society of Actuaries
847.706.3528
kmckeown@soa.org

www.soa.org
www.CERAnalyst.org

Decisions News Release@

Society of Actuaries Partners with Leading Actuaries to
Help Businesses Deliver on the Promise of Enterprise Risk Management

Well-Informed Decisions on People, Approach and Viewpoint
Yield Smarter and More Confident Decisions, Actuaries Say

SCHAUMBURG, ILL. (November 6, 2007) – Introduced only a few short years ago as a framework for operating in a post-9/11, Sarbanes-Oxley-compliant era, the notion of enterprise risk management (ERM) is steadily evolving from "buzz terminology" to an accepted practice. Pushing this little acronym into the limelight are today's challenges and tomorrow's uncertainty: an expanding breadth of individual risks and their sometimes not-so-apparent interconnectivity; globalization; ratings agency requirements; financial disclosures; Basel compliance; and continued attention from boards of directors. As consultants, chief risk officers and risk managers, members of the actuarial profession are seeing a startling trend -- many businesses are failing to deliver on the promise of ERM.

Without a set of guiding principles, businesses may find themselves at perilous crossroads in defining and managing risks; and instead, they may over-mitigate risks, underestimate risk exposures or altogether miss opportunities to capitalize on risks.

"With so much at stake, it is time for a step check to ensure businesses and their enterprise risk managers are informing, approaching and defining ERM in a consistent way," said S. Michael McLaughlin, FSA, CERA, FIA, MAAA, member of the Society of Actuaries' (SOA) Board of Governors and global leader, A&IS, for Deloitte Consulting LLP. "As it relates to risk, actuaries believe it is crucial to make well-informed decisions on people, approach and viewpoints before making decisions about solutions."

Based on best practices from years of experience, leading actuaries, in partnership with the SOA, urge businesses to commit to five principles to evaluate their ongoing ERM investments.

1. A Qualified Leader -- Without proper guidance, training and leadership from a skilled risk professional, actuaries point out that attempting to navigate risks is a futile exercise. Based on the premise that risks cut across an entire organization, the obvious first step is to ensure that disparate departments are in the same room and on the same page about an organization's risks.

"Businesses require a qualified leader to mediate the cross-section of delegates who sometimes have varying agendas," said Max Rudolph, FSA, CERA, CFA, MAAA, founder and actuary at Rudolph Financial Consulting, LLC. "In our experience, multinational businesses are engaging chief risk officers with an actuarial background to fill this role, just as smaller companies are moving toward outsourcing chief risk advisors (CRAs) from consulting firms."

The SOA has been aggressive in the continued professional development of actuaries as leaders in risk management, recently launching the Chartered Enterprise Risk Analyst (CERA) credential, which is earned by individuals who complete a curriculum incorporating the most comprehensive and rigorous demonstration of enterprise risk management available. It is the SOA's first new credential in nearly 60 years.

2. Clear Communication -- ERM processes that do not lead to the translation of highly complex and technical issues cannot arrive at actionable information to make smarter, more confident decisions. Actuaries say that businesses must "sell" in a need for risk management, but it is equally important that businesses have a corporate culture that fosters willingness to listen to what they need to do.

3. A Combination of Qualitative and Quantitative Information -- Every risk should be assigned a quantifiable number for management to make a well-informed decision. Though ERM is not a new concept, actuaries report that many companies are not practicing this technique. Additionally, businesses need to prioritize risks and develop scenario mapping to understand any unintended consequences that can result from how the risk is mitigated.

Through their rigorous credentialing process (required to become an ASA, FSA or CERA), actuaries are trained to apply both qualitative and quantitative insights to risk management.

4. A Broader Focus -- Risk management processes also suffer from inefficiencies when business operations are separated from those managing risk. The best ERM examples integrate risk, capital and financial management.

"Actuaries often serve as a bridge between financial and business risks and regularly communicate about threats and opportunities associated with their interconnectivity," said Douglas W. Brooks, FSA, CERA, FCIA, MAAA, senior vice president and chief financial officer for Equitable Life of Canada. "In addition, businesses often don't think about the unintended consequences of their decisions. Consider the recent subprime mortgage issues or the agricultural issues with more farmers converting crops to ethanol. All of these decisions have led to new risks and challenges that must be addressed."

5. An Attitude Adjustment -- As asserted by the profession's tagline, Risk is Opportunity.(SM), delivering on the promise of ERM depends on an ability to see risk differently. Understanding risk exposures and defining the "risk appetite" will maximize every opportunity.

"Businesses need a consistent definition of the evolving complex risks through a robust ERM framework," said Sim Segal, FSA, CERA, MAAA, member of the SOA's Board of Governors and managing director at Aon Global Risk Consulting, Aon Corporation. "With that in mind, actuaries take a 360-degree perspective to understand the shock resistance of the enterprise to its key risks and to better manage enterprise risk exposure to the level desired by senior management."

About Actuaries

Actuaries bring a complex future into focus by applying unique insight to risk and opportunity. Known for their comprehensive approach, actuaries enable smart, more confident decisions.

About the Society of Actuaries

The SOA is an educational, research and professional organization dedicated to serving the public and its 18,000 members. The SOA’s vision is for actuaries to be recognized as the leading professionals in the modeling and management of financial risk and contingent events. The SOA's mission is to advance actuarial knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions for financial, business and societal problems involving uncertain future events. To learn more, visit www.soa.org.

For more information visit the electronic press kit at www.redwoodeditor.com/content/SOA/CERA.

CERA News Release@

The Society of Actuaries Introduces New Chartered Enterprise Risk Analyst Credential, Reflecting Most Rigorous Enterprise Risk Management Training Available

First New Credential Since the SOA's Inception
Marks Evolution of Actuaries

SCHAUMBURG, ILL. (August 1, 2007) – Today's business world, facing an expanding breadth of risk, requires a new breed of professional with well-rounded, rigorous training to provide actionable solutions to complex financial challenges. To help businesses identify the best-qualified risk managers, risk analysts and chief risk officers, the Society of Actuaries (SOA) has introduced its first new professional credential in nearly 60 years -- the Chartered Enterprise Risk Analyst (CERA). The CERA can be earned by professionals who complete a rigorous curriculum encompassing the most comprehensive demonstration of enterprise risk management (ERM) available.

Edward L. Robbins, FSA, FCA, MAAA, president of the SOA, said the new CERA credential stems from the same rigorous process through which actuaries earn their traditional credentials. "CERAs are trained to apply both qualitative and quantitative insights to risk management," he said. "As a result, these professionals are best equipped to convert risk into opportunity.

"Actuarial principles have traditionally helped the world understand risk, and the CERA credential signifies an evolution of the actuarial profession," Robbins continued. "Today, as new roles in enterprise risk management continue to grow, actuaries are becoming leaders in this practice, which takes a 360-degree view of an organization's risk profile."

CERAs are qualified for risk manager leadership positions in all types of organizations, including insurance, benefits, broader financial services and the energy, manufacturing, transportation and healthcare industries.

"College students considering business careers will find that earning the CERA credential will open doors to exciting new opportunities where they can make significant contributions in a variety of organizations," Robbins said.

S. Michael McLaughlin, FSA, CERA, MAAA, FIA, has been instrumental in developing the CERA curriculum and has been joined by a team of actuaries who are pioneers in ERM. "CERA training does not stop with mathematics and financial engineering," he notes. "Instead, CERAs are trained to model future events by converting data into information that leads to strategic decisions."

To earn the new international credential, CERA candidates are required to successfully complete five examinations, as well as an educational module and professionalism course, to help prepare for leadership in the identification, measurement and management of risk within complex, risk-bearing enterprises. The curriculum includes the topics of:

Probability
Financial Mathematics
Financial Economics
Micro and Macro Economics
Construction of Actuarial Models
Advanced Finance and Enterprise Risk Management
Financial Reporting and Operational Risk
Professionalism

The CERA marks the first new credential since the SOA's founding. The original Fellow of the Society of Actuaries (FSA) and Associate of the Society of Actuaries (ASA) credentials were established in 1949. Completing the CERA curriculum takes an estimated three to four years, and successful candidates will also become Associates of the Society of Actuaries. More than 60 professionals are advancing their skill sets as the first to earn the CERA credential. For more information, visit www.CERAnalyst.org.

“Businesses that rely on CERAs can make smarter, more confident decisions," Robbins said. "Because the definition of risk is evolving from mere mitigation to expansion of opportunity, CERAs don't merely speak to what we can lose; they focus on what we can gain."

About the Society of Actuaries
The SOA is an educational, research and professional organization dedicated to serving the public and its 18,000 members. The SOA’s vision is for actuaries to be recognized as the leading professionals in the modeling and management of financial risk and contingent events. The SOA's mission is to advance actuarial knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions for financial, business and societal problems involving uncertain future events. To learn more, visit www.soa.org.

Decisions and Crossroads@

http://www.redwoodeditor.com/content/SocietyofActuaries/cera/userfiles/File/Decisions_Crossroads.pdf