ENTERPRISE RISK MANAGEMENT MCCI – BLOEMFONTEIN 29 OCTOBER 2013

ARTHUR ELS – Enterprise Risk Actuary Managing Director and Senior Actuary at Arthur Els and Associates; a medium-sized firm of Consulting Actuaries and Enterprise Risk Actuaries based in Johannesburg. Clients of the Company include a number of the Top 100 Companies in South Africa. Arthur is one of the few qualified Enterprise Risk Actuaries in the country. His Company is one of only two practices currently in South Africa offering clients actuarially-based Enterprise Risk Management expertise which is underpinned by the advanced CERA qualification.

The business world is constantly evolving and GROWING everyday. more complex

So shouldnt the approach to MANAGING RISK evolve as well?

The post-9/11 business world is one of Organisations will increasingly rely on high level risk professionals who are independent, impartial to assure stakeholders of their sustainability – Increasingly stringent regulatory standards – a rapidly globalising marketplace and – more demanding and active stakeholders

and OPTIMISE risk to meet the companys mission and objectives / goals.

ENTERPRISE RISK MANAGEMENT Risk Analysis Risk Identification Risk Evaluation Risk Planning Risk Management

ENTERPRISE RISK MANAGEMENT / CERA Compile a detailed risk register Apply statistical techniques for quantification of the risks Risk based modelling of future scenarios

EXAMPLE OF RISK REGISTER

The age of information has come and gone, replaced by the age of business intelligence, which heralds the age of innovation …

* CERA ~ CHARTERED ENTERPRISE RISK ACTUARY The (CERA) credential encompasses the most comprehensive and rigorous demonstration of enterprise risk management (ERM) expertise available.

CERA CERAS complete a rigorous curriculum that covers probability, financial mathematics, micro / macro economics, construction of actuarial models, advanced finance and enterprise risk management, financial reporting and operational risk.

CERA represents insight, creativity and integrity. The CERA letters after someones name indicate to the business world that there is no other type of risk professional better equipped to take a 360- degree view of an organisations risk profile.

CERAS ARE ADVANCING THE ERM FIELD Enable organisations to be more transparent Help companies adequately meet strict financial reporting and control requirements

ADDRESS SECURITY AND TECHNOLOGY ISSUES Prepare for disaster and business continuity in a post-9/11 world Help companies remain competitive in the globalised marketplace

THE TOP FIVE CONSTRAINTS* TO ACHIEVING BUSINESS OBJECTIVES Cost of doing business Currency volatility Macroeconomic uncertainty General skills shortage Labour unrest * Source – Supply Chain Foresight

THE TOP FOUR CONSTRAINTS* TO ACHIEVING SUPPLY CHAIN OBJECTIVES Cost of transport Available supply chain skills Labour unrest Efficiency of ports and harbours * Source – Barloworld Logistics 2013 Supply Chain Foresight

CERAS focus on how operational risk, investment risk, strategic risk, and reputational risk collectively impact an organisation.

CERAS ARE QUALIFIED FOR POSITIONS AS RISK ANALYST, RISK MANAGER AND CHIEF RISK OFFICER IN FIELDS SUCH AS: Broader Financial ServicesConsulting MarketsInsurance and Reinsurance Energy

CERAS ARE ALSO QUALIFIED IN FIELDS SUCH AS: Transportation Media Technology Manufacturing Construction Healthcare

ENTERPRISE RISK MANAGEMENT / CERA The determination of economic capital taking steps to mitigate undesirable risk likelihood of "black swan" events i.e. APPLYING extreme event theory

… The business world is constantly evolving ~ growing more complex – in terms of KING III code of governance - ethical leadership, responsible corporate citizenship, the governance of risk, the governance of information technology (IT) …..

… a window of OPPORTUNITY to MANAGING RISK

The penalty for not having an intelligent strategy as a business is no longer slower growth. It is death. Innovation has become an even more important element of a Companys life cycle, since to grow somebody else has to shrink. Competition in being original has just undergone a quantum leap ~ Clem Sunter

….. CHALLENGES BECOME OPPORTUNITIES WHEN THE RIGHT PEOPLE JOIN TOGETHER.

LETS TALK

ARTHUR ELS AND ASSOCIATES WEBSITE : CONTACT NUMBER :