1、Joint Regional SeminarAugust 2010S. Michael McLaughlin, FSA, CERA, SOA President,The Global CERA Credential,A Global Credential,3,CERA as a Global Credential,Idea emerged from discussions at meetings of the International Actuarial Association and the international Presidents ForumThe SOAs CERA crede
2、ntial viewed as a model for a global credential,History in the Making,In November 2009, the SOA and 13 actuarial organizations signed a treaty to establish SOAs CERA credential as the globally recognized ERM credentialFirst time (we believe) in any profession that multiple organizations have joined
3、to offer a specialized credential!,4,Global CERA Treaty,5,6,Overview,ERM Defined,Enterprise Risk Management is the discipline by which an organization in any industry assesses, controls, exploits, finances and monitors risks from all sources for the purpose of increasing the organizations short- and
4、 long-term value to its stakeholders.,8,9,Enterprise Risk Management,Growing need for organizations to link their risks across their business units and adopt a more comprehensive frameworkERM is the process of risk analysis and management across an entire organizationERM is a combination of risk mod
5、els and governance,10,A New Risk Credential,The Society of Actuaries (SOA) identified the need for a new credential to demonstrate ERM competence in the traditional and broader financial services marketplaceIn June 2005 the SOA Board approved the development of new risk credential,11,CERA Introducti
6、on,The CERA credential is the first new professional credential to be introduced by the SOA since 1949Currently there are 662 CERAs in the workforce,12,The Chartered Enterprise Risk Analyst (CERA) credential encompasses the most comprehensive and rigorous demonstration of enterprise risk management
7、(ERM) expertise available.,CERA,13,Benefits,15,Global Marketplace Benefits,Enables organizations to be transparentHelps companies meet financial reporting and control requirementsAddresses security and technology issuesPrepares for disaster and business continuity in post-9/11 worldHelps companies r
8、emain competitive in a global marketplace,16,Employer Benefits,Increases value of human capital through ERM expertiseHelps internal ERM programHelps implement clients ERM programsDifferentiates firm as ERM expertsCERAs possess strong quantitative and financial assessment skills,17,Candidate Benefits
9、,The most comprehensive and rigorous ERM training availableEnhance exposure to the C-suiteDifferentiates them from other risk professionalsAdvances the field of ERMExpands professional network,18,Significance of CERA Credential,ERM is a best practiceBrings consistency and standardization to ERM prac
10、ticeExpands actuarial skill set into nontraditional sectors, such as Broader Financial Services,Curriculum,20,Curriculum,Approximately 3-4 years to obtain the CERA credentialIncludes actuarial science, ERM principles and professionalism,21,21,Chartered Enterprise Risk Analyst (CERA) Credential for E
11、RM,Global CERA Credential Strategy and Operations,Strategy,Facilitate free movement of actuaries internationally Increase the influence of the actuarial profession in the sphere of enterprise risk managementAllows CERAs to have an internationally recognized credential,23,Operations,Treaty Board esta
12、blished, meets by conference call twice monthlyEach participating actuarial organization appoints a member to serve a three-year termCERA Global Association (CGA) established using a verein model on 7th May 2010,24,Operations,Efforts are now underway to complete the transfer of the SOA intellectual
13、property in the CERA to the CGAU.K. application was approved for award signatory statusFour organizations are in queue for review of their applications to be award signatories (Australia, CAS, Netherlands and South Africa),25,Operations,Website is in developmentDesign of a standard certificate is un
14、derwayForming a PR group to develop a publicity program to promote the CERA global credential,26,Quality Assurance,Review Panel established to ensure strong quality assurance program to maintain the value of the credentialWill review participating associations processes used in qualifying candidates
15、 for the credentialThorough review of learning objectives, syllabus and learning materials,27,Quality Assurance,Annual review to include testing processes, pass rates and quality assuranceIn-depth review every three years,28,Resources,30,31,Broader Roles for Actuaries,Opportunities for Actuaries,Act
16、uaries existing skills are underutilized!Cell phone contractNatural gas utilitySports statistics Airline pricing,32,Opportunities for Actuaries,ERMBroader industriesAnalyticsPublic voice,Working with other organizationsIncreased international focusBetter communication,33,SOA Strategic Initiatives,Im
17、proved CommunicationsGlobal CERA Intellectual Capital FrameworkInter-organizational SynergiesInternational Membership Strategy,Leadership Development ProgramMarketing & Market Development Plan Professional Development RedesignRole of AcademiaUntapped Opportunities in the Health Industry,34,SOA Opera
18、tional Initiatives,Centers of Actuarial Excellence ProgramContinuing Professional Development: Attestation & Audit Enhanced Communications PlanningKnowledge Management Blueprint,Fellowship Exams Twice a YearRapid Retirement Research PilotSOA Risk CommitteeMigration to New DatabasePCI Compliance for Credit Card Processing,35,36,Questions,37,Thank You!,
