From the Readers

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Seeing the Elephant

Dear Editor:

The CAS has advisory committees on Asset/Liability Management [and Investment Policy], Enterprise Risk Management, and Valuation of P/C Companies; research and development committees on Dynamic Financial Analysis, Theory of Risk, and Valuation, Finance, and Investments; and [the former] Task Force on Fair Value Liabilities.  Does the CAS run the risk of not seeing the elephant? Certainly these seven topics are merely different aspects of the same fundamental problem, which is the practical problem of measuring and maximizing the value of the firm in the context of uncertainty.

Each committee is doing important work, and each undoubtedly addresses an important aspect of the problem.  Yet the communications are necessarily imperfect.

For our CEO clients, the practical problem of measuring and maximizing the value of the firm is the most important problem we can address.  The recent survey of CEOs gave poor marks for actuaries' ability to communicate in a language that CEOs can understand.

If we have seven committees working on a topic of great importance to CEOs and we aren't good at communicating to CEOs, the risk of poor communications is very real.

Perhaps a coordinated committee structure and participation by CEOs would improve our ability to communicate on this important topic.

Oakley E. Van Slyke, FCAS