Future Fellows - June 2009
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CAS to Pursue an ERM Designation

The CAS Board of Directors decided at its March 19-20, 2009, meeting that the CAS would pursue an Enterprise Risk Management (ERM) designation, in accordance with the recommendation of the CAS Enterprise Risk Management Designation Task Force (Task Force).

The Task Force was formed in April 2008 and charged with monitoring developments on an ERM designation, exploring issues and opportunities for the CAS, and recommending a course of action. The CAS has been engaged with a number of actuarial organizations internationally to explore the possibility of creating a global ERM designation. In addition, the CAS and the Society of Actuaries have been discussing a possible expansion of the Chartered Enterprise Risk Analyst (CERA) designation for CAS members.

Consistent with the task force recommendations, the board authorized CAS leadership to continue to pursue multiple possible courses of action in developing an ERM designation for the CAS, including:

  • Continuing discussions with international actuarial associations for the development of a global ERM designation, temporarily referred to as “XRX.”
  • Continuing discussions with the SOA on the appropriateness of CERA as the ERM designation.
  • Pursuing efforts to reconcile XRX and CERA such that there would be a single ERM designation for the CAS, SOA, and other actuarial associations in North America and possibly globally.

The board felt that an ERM credential supported by several actuarial associations would be preferable, since the designation likely would carry greater weight in the marketplace and such a partnership would strengthen ties between the actuarial organizations. If the efforts outlined above were to falter, however, the CAS could pursue its own independent ERM designation.

Many details remain unresolved as the task force continues its discussions with other actuarial organizations and develops detailed implementation plans for each of the alternatives, for future board consideration. The board expects to make a decision on the CAS course of action by the end of 2009.

Editor’s Note: This article originally appeared in the May 2009 issue of The Actuarial Review.   

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