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Intro to ERM Online Course Offered

Enterprise Risk Management (ERM) applies basic risk management principles to all risks facing an organization. Under ERM, hazard, financial, strategic, and operational risks are integrated into a single framework. ERM became an important issue partly as the result of the Sarbanes-Oxley Act of 2002, which put greater responsibility on the board of directors for managing all of an organization’s risks. Although its initial focus was as a method for avoiding the derivative disasters that occurred for many firms, ERM is now developing into a tool that can be used to optimize a firm’s value. Risks are divided into core risks, which a firm should have a competitive advantage in coping with, and non-core risks, which can more effectively be transferred or hedged. This online course will introduce actuaries to the ERM field and show how many actuarial skills and techniques are applied in ERM. The online course will be offered twice: June 17-July 4, 2011, and September 9-26, 2011.

This module consists of 12 lectures, exercises, and an exam, all delivered over the CAS Web Site. Participants will also receive a CD. The course will be taught asynchronously so participants can fit the work into their individual schedules. The lectures will consist of PowerPoint slides and audio. (Participants must have Microsoft Office PowerPoint software in order to participate.) The exercises and exam will be based on lecture material and readings.

The readings for the course will include selected chapters from one textbook (Enterprise Risk Management: From Incentives to Controls by James Lam, Wiley, 2003), plus additional readings published by the CAS, the SOA, academic journals, and Internet sources. During the course, participants will take part in a chat space devoted to discussions of exercises and topics related to the course.

Students will be introduced to ERM’s context, practice, and framework, as well as hazard, financial, operational, and strategic risks. Other topics rounding out the course are risk metrics and ERM application, and the pros and cons the framework established by COSO (the Committee of Sponsoring Organizations of the Treadway Commission).

The course will presume no prior knowledge of ERM. Enrollment is limited to a maximum of 40 participants. Those enrolled in the course must have a user name and password to gain entrance to the Web pages of the online course. The same user name and password can be used to register online for the online course. The login information will be distributed no later than June 10, 2011. If you do not have a user name and password, please register as a new visitor.

Note: To insure all participants receive the course materials in a timely manner, registration for this course will close on May 17, 2011.

For more information and to register, visit the CAS Web Site.

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