International Actuaries: Embrace Risk Management to Prevent Future Financial Crisis



    OTTAWA, Feb. 14 /CNW Telbec/ - The International Actuarial Association
announced today a global risk management framework to improve financial
governance and help prevent future financial crises. The framework, which
includes components such as counter cyclical regulatory arrangements and
improved enterprise risk management, serves as a model for its member
organizations to recommend reforms, improvements, and solutions applicable
across the financial services sector within their respective jurisdictions.
    "Recent developments in the global financial markets have raised serious
questions about the management and oversight of financial services
industries," said Katsumi Hikasa, the president of the International Actuarial
Association, which represents the profession globally. "Actuarial methods can
help to manage uncertainty and mitigate the impact of risk. The worldwide
actuarial profession believes that tools and methodologies being developed in
the emerging field of enterprise risk management will become increasingly
important to both financial market participants and regulators in the future."
    Tony Coleman, chair of the International Actuarial Association's
Enterprise and Financial Risk Committee, said that based on lessons learned
from the financial crisis, the association has outlined initiatives that will
help prevent future financial crises. The key initiatives are identified in a
summary paper, Dealing with Predictable Irrationality - Actuarial Ideas to
Strengthen Global Financial Risk Management. The paper urges a combination of
"systemic level" initiatives, such as introducing national Chief Risk
Supervisors and "entity level" initiatives such as the application of risk
management concepts and improved risk governance. To read the entire
statement, visit
http://www.actuaries.org/CTTEES_TFRISKCRISIS/Documents/IAA_Financial_Risk_Mana
gement_EN.pdf.
    For more information, please contact Katy Martin, IAA Project Manager,
Technical Projects (katy.martin@actuaries.org).




For further information:

For further information: Katy Martin, (613) 236-0886,
katy.martin@actuaries.org

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INTERNATIONAL ACTUARIAL ASSOCIATION

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