The Actuarial Association of Europe and its Risk Management Committee

Slides:



Advertisements
Similar presentations
Organizational Governance
Advertisements

1 Cedefops policy progress reporting PLE on National LL Guidance Policy Forums Cedefop, 4-5 June 2008 presented by György Ispánki Policy Analysis.
Developing a distinctive approach to the Academys work in Scotland Alastair Robertson Senior Adviser, Scotland Presentation at University of Stirling,
THE ROLE OF THE ACTUARY IN THE ECONOMY
EFSA’s Mission and Priorities Bernhard Berger Head of the Advisory Forum and Scientific Cooperation Unit Conference “Importance of food additives today.
The ROLE of the ACTUARY in INSURANCE PRUDENTIAL SUPERVISION Yangon, Myanmar 14 July 2014 Chi Cheng Hock, FFA.
Role of actuarial function supporting the FLAOR leading to the ORSA Ian Morris June 2014.
WHERE WE ARE 22 member associations in 20 countries Over 4300 individual members who are responsible for risk management and/or insurance in their organisations.
OECD Guidelines on Insurer Governance
Demystifying the Business Analysis Body of Knowledge Central Iowa IIBA Chapter December 7, 2005.
Journeying with a Board Coach. Why seek external assistance? From experience, the reasons for engaging someone to work with your Board tend to fall into.
Solvency II Open Forum 4 th March 2008 Michael Aitchison.
Commissioning Self Analysis and Planning Exercise activity sheets.
Private & Confidential1 (SIA) 13 Enterprise Risk Management The Standard should be read in the conjunction with the "Preface to the Standards on Internal.
Dr. Maria-Carme Torras i Calvo Chair, IFLA Information Literacy Section Dr. Sharon Mader Secretary, IFLA Information Literacy Section Global Partnerships.
Geneva Association/International Insurance Society Research Presentation, Chicago Enterprise Risk Management in the Insurance Industry Madhusudan.
Corporate Social Responsibility LECTURE 25: Corporate Social Responsibility MGT
Delivering growth, improvement, & influence for our members EMITA going forward Donald van der Merwe Intevexis Sunday, 15 November 2015.
The actuarial profession in insurance Renata De Leers, Executive Director, Actuaries Without Borders, IAA Section Actuary IA|Be Queenie Chow AIAA, Associate.
PD 8 OSFI Capital Update Stuart Wason Senior Director Actuarial Division OSFI CIA Appointed Actuary Seminar September 18, 2009.
1 COSO ERM Framework Update Our Next Challenge and Opportunity September 2015.
Governance, Risk and Ethics. 2 Section A: Governance and responsibility Section B: Internal control and review Section C: Identifying and assessing risk.
Consultation on Guidance for (Re)Insurance undertakings on the Head of Actuarial Function Role (CP 103) Presentation to Society of Actuaries in Ireland.
The Role of the Economic and Social Council of Bulgaria for the Development of Civil Dialogue and New Forms of Consultations Prof. Lalko Dulevski President.
Project: EaP countries cooperation for promoting quality assurance in higher education Maria Stratan European Institute for Political Studies of Moldova.
Republic of Turkey Ministry of Science, Industry and Technology TURKISH INDUSTRIAL STRATEGY DOCUMENT (TOWARDS EU MEMBERSHIP) 2 May 2012.
ERASMUS + Care to Work project (2014) Abused no More project (2015)
Board Roles & Responsibilities
A strategic vision for regional cooperation in the Arab Region Arab States Round Table World Bank Land and Poverty Conference 2017 Washington, 21 March.
Regulation in Financial Accounting
Well Trained International
Joint Seminar Brussels 2017.
Professional Review Process for Heads / Principals
Audit / Risk Committee effectiveness
STRESS TESTS and TAIWAN PEER REVIEW PROCESS
Risks & Opportunities AN INTERCULTURAL, MULTI-STAKEHOLDER APPROACH
Information for New Members of Crown Entity Boards
Communications Strategy
Presented by Robert Ford
Session 3 – Risk Management and Internal Controls: Actuary Function ICP 8: Risk Management and Internal Controls 2017 ASSAL Regional Seminar on Training.
كلية التربية لجنة تدقيق الجودة
Research Program Strategic Plan
Setting Actuarial Standards
Operational Risk and its impact on the Fund & Investment Management Industry An Insurance Perspective Angelos Deftereos Aon Limited 16th April 2003 Aon.
HOLDING SLIDE.
Eurostat Quality Management (in the ESS context)
Communications Strategy
4. Solvency II – Own Risk and Solvency Assessment (ORSA)
Support for the AASHTO Committee on Planning (COP) and its Subcommittees in Responding to the AASHTO Strategic Plan Prepared for NCHRP 8-36, TASK 138.
European Environment Agency
York Committee Introduction to the York Committee.
HOLDING SLIDE.
LITHUANIAN EU PRESIDENCY PRIORITIES
Building Changes’ Strategic Business Planning Process
LITHUANIAN EU PRESIDENCY PRIORITIES
BAI Gender Action Plan 27th April 2018 IFI - Spotlight Stephanie Comey.
The role of the ECCP (1) The involvement of all relevant stakeholders – public authorities, economic and social partners and civil society bodies – at.
Corporate Governance It is a system by which companies are managed and directed in the best interests of the owners and shareholders. It refers to the.
The partnership principle in the implementation of the CSF funds ___ Elements for a European Code of Conduct.
Who Are We? Camphill Scotland is not another name for ‘Camphill IN Scotland’. Camphill Scotland has its own unique identity as a membership organisation.
Draft Methodology for impact analysis of ESS.VIP Projects
Civic Engagement in Minnesota
Prof. Lalko Dulevski President of the ESC of Bulgaria
Plan your journey.
11 Tightening and capacitating the Legislatures Research Units to meet the expectation of the institutions that compliment Parliament’s oversight function.
Session 5. Effective M&E systems for the SDGs
May 2019 The Strategic Programme for Primary Care
Stakeholder & Public Affairs Manager
Gauteng Provincial Legislature Money Bills Act Discussion
CEng progression through the IOM3
Presentation transcript:

The Actuarial Association of Europe and its Risk Management Committee Malcolm Kemp 22 May 2019

Agenda The Actuarial Association of Europe (‘AAE’) The AAE Risk Management Committee Examples of current RMC activities Promoting Actuaries in Risk Management Chief Risk Officer / Risk Management Function Holder Round Table Actuaries and Operational Risk Management

Agenda The Actuarial Association of Europe (‘AAE’) The AAE Risk Management Committee Examples of RMC current activities Promoting Actuaries in Risk Management Chief Risk Officer / Risk Management Function Holder Round Table Actuaries and Operational Risk Management

About the AAE Vision: for actuaries throughout Europe to be recognised as the leading quantitative professional advisers in financial services, risk management and social protection, contributing to the well‐being of society, and for European institutions to recognise the valuable role that the AAE plays as a leading source of advice on actuarial and related issues Established in 1978 under the name Groupe Consultatif to represent actuarial associations in Europe Primary purpose is to provide advice and opinions to European organisations (e.g. Commission, Council of Ministers, European Parliament, EIOPA) on actuarial issues in European legislation 36 member associations in 35 European countries, representing over 24,000 actuaries AAE advice and comments are totally independent of industry interests

AAE Strategic Objectives Strategic Objective 1: Enhance relations with European institutions Establish and maintain relationships with key European institutions, so that the AAE can effectively provide them with high quality professional advice to improve the soundness of decisions from an actuarial perspective Strategic Objective 2: Promote Professionalism Promote consistent standards of education and professionalism among actuaries in Europe Strategic Objective 3: Promote a European community of actuaries Promote a European community of actuaries between AAE member associations, their members and the AAE

The AAE’s Committees Professionalism Committee Insurance Committee Pensions Committee Risk Management Committee Education Committee All Committees report to the AAE Board. Member Associations are allowed to send delegates to the General Assembly and representatives to events and to meetings of the AAE’s Committees

Agenda The Actuarial Association of Europe (‘AAE’) The AAE Risk Management Committee Examples of RMC current activities Promoting Actuaries in Risk Management Chief Risk Officer / Risk Management Function Holder Round Table Actuaries and Operational Risk Management

The AAE Risk Management Committee Meets in person every six months (along with and sometimes in joint session with other AAE Committees), and sometimes also by conference call Supports other AAE Committees and Working Groups Including the AAE’s Solvency II Working Group which is currently very focused on the planned 2020 Review of Solvency II Many different workstreams covering many topics, many likely to overlap with AFIR ERM areas of interest All align in some way with AAE’s overall objective Pace of progress depends on volunteer engagement I would like to thank very much all the volunteers who contribute their valuable time to the work of the AAE RMC

Engages in a wide range of activities Current and Recent Past Topics on Workplan include 2020 Review of Solvency II Reaching out to other European risk management organisations Promoting actuaries in risk management Promoting consistency amongst European RM actuaries Adding value through ORSA / ORSA support material Actuarial Chief Risk Officer / Risk Management Function Holder Round Table EAN on ESAP 3 (ORSA) Risk management article database Actuaries and operational risk Solvency II Risk margin Reputational and conduct risk Remuneration policy IFRS 17 (including risk adjustment) Calibration of ESGs World beyond finance and insurance risks Systemic risk Pension fund (IORP) risk management disciplines Sustainable finance IFRS 17 Model risk Failures and near failures of insurers

Agenda The Actuarial Association of Europe (‘AAE’) The AAE Risk Management Committee Examples of current RMC activities Promoting Actuaries in Risk Management Chief Risk Officer / Risk Management Function Holder Round Table Actuaries and Operational Risk Management

Promoting Actuaries in Risk Management Internal position paper prepared, including: Self-assessment: strengths, weaknesses, opportunities and threats? Stakeholders’ assessment: needs and expectations of our stakeholders? Evaluation: extent of alignment between self- and stakeholders’ assessment? Proposed strategy: how can we best move forward? Wide-ranging stakeholder consideration, e.g: Board of Directors, Executive Team, Regulators, Customers/Insured, Rating Agencies, Shareholders, Employers (IORPs) Distilled for an external audience into a two-pager

Proposed Position Paper: Promoting Actuaries in Risk Management (1)

Proposed Position Paper: Promoting Actuaries in Risk Management (2)

CRO / RMFH Round Table Inaugural event held in Brussels in November 2018 involving c. 35 senior actuaries in insurance risk management across Europe. Topics included: Regulatory backdrop The relevance of systemic risk to insurance What Boards ideally want from CROs or Heads of Risk Management Function Panel session involving CROs discussing experiences, challenges, skills needs, how the AAE might assist and the future direction for risk management Attendees explored added value of actuaries, promoting actuaries in risk management, skills and education needed, actuarial profession assistance for CROs etc. Organising committee is now exploring next steps.

Actuaries and Operational Risk Management Paper developed: Kemp, Krischanitz, de Level and Van den Borre (2019). “Actuaries and Operational Risk Management”. Covers: Operational risk management disciplines, techniques and trends Skills and techniques actuaries can bring to operational risk management Most of paper relates to insurers or IORPs but some content broader Appendices cover many roles that those working in operational risk are likely to get involved with Presented to RMC in April 2019 for feedback and due to be presented externally to European Congress of Actuaries in Lisbon, June 2019

Main roles of an operational risk manager Identify context: regulatory / internal / emerging risks Coordinate overall picture: via ORSA / ORA / ICAAP / ILAAP … Appendix A Set the scene: workshops, gather data Appendix B Analyse the data and carry out modelling Often limited data / assumptions But typically modelling still beneficial Appendix C Appendix E Understand how picture might change: stress testing, scenario analysis Appendix D Communicate results and interact with others Set/monitor limits/KRIs, iterate process Appendix F

E.g. Coping with limited data Stylised split of operational risk into: High frequency, low severity Low frequency, high severity Low frequency high severity now seen to dominate in financial sector Influencing regulatory (lack of) enthusiasm for operational risk internal models, c.f. Basel III changes Need to supplement data with expert judgement (e.g. via stress tests, workshops, …) I.e. apply credibility theory Akin to claims reserving, which also implicitly relies on credibility weighting if there is limited data available to estimate future development of cohort

Summary The Actuarial Association of Europe (‘AAE’) Supporting the recognition of actuaries in Europe, particularly with European institutions The AAE Risk Management Committee Specific committee within AAE that focuses on risk management Broad remit, given wide ranging nature of risk management Examples of current RMC activities Many, ones given focused on: Promoting Actuaries in Risk Management Chief Risk Officer / Risk Management Function Holder Round Table Actuaries and Operational Risk Management