CAS to Award the ERM Designation CERA
ARLINGTON, Va.—Following its March 2009 decision to pursue an enterprise risk management (ERM) designation, the CAS Board approved the recommendation to adopt the Global ERM Designation, CERA, during a special board teleconference held on June 23. The board authorized the CAS president to sign the Global Enterprise Risk Management Designation Treaty (Global Treaty) establishing the credential, when the treaty is finalized.
As described in the May 2009 Actuarial Review article “CAS to Pursue an ERM Designation,” CAS leadership was considering multiple possible courses of action in developing an ERM designation for the CAS, including:
- working with international actuarial associations on the development of a global ERM designation;
- discussing with the Society of Actuaries (SOA) the appropriateness of CERA as the ERM designation;
- pursuing efforts to reconcile the global credential 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 third approach was the preferred option because an ERM credential supported by several actuarial associations likely would carry greater weight in the marketplace and such a partnership would strengthen ties between the actuarial organizations.
That option became more likely when the SOA Board voted in early June to support the adoption and implementation of a global ERM credential and expressed its intention to sign the Global Treaty when it is finalized. In addition, the Canadian Institute of Actuaries Board met on June 17 and voted in favor of signing the Global Treaty. At least ten actuarial organizations outside North America are expected to sign the treaty when it is final, with others to follow in later years.
An international steering committee has been established and charged with resolving the issues necessary to finalize the treaty. Kevin Dickson, CAS Vice President-ERM, is the CAS representative on this committee. Various issues on governance, quality assurance, and legal matters are expected to be finalized promptly so that the formal treaty can be executed. In the meantime, CAS Admissions Committees are already working on the learning objectives, syllabus, and requirements for attaining the ERM designation, within the parameters of the treaty. Details will be released to the CAS membership as soon as they are available.