Outline

1. Casualty Actuarial SocietyExperienced Practitioner Pathway SeminarLecture 1 – Introductions and Overview of CERA DesignationStephen P. D’Arcy, FCAS, MAAA, Ph.D.Robitaille Chair of Risk and InsuranceCalifornia State University – FullertonD’Arcy Risk Consulting, Inc.

2. Outline • Introductions • What is the CERA Designation? • ERM credential • International scope • CAS & CERA • Actuarial education • Key ERM Dates before the CERA Treaty • Appendix – Learning Objectives EPP Lecture 1: Introductions and Overview of CERA Designation

3. Introductions • Speakers • Steve D’Arcy • Dave Ingram • Shaun Wang • Rusty Kuehn • Chris Diamantoukos • Jerry Miccolis • Barry Franklin • Participants EPP Lecture 1: Introductions and Overview of CERA Designation

4. What is the CERA? • Global actuarial ERM credential • Are there any other ERM credentials that are global? • Grew to 1,000 CERAs in October of 2011 • What does CERA mean? • Depends on where you are • North America: Chartered Enterprise Risk Analyst • UK (IFA): Chartered Enterprise Risk Actuary • Benelux: a bank! • “C” can also mean “Certified” • CERA is the Brand • Registered mark in many countries (IP) EPP Lecture 1: Introductions and Overview of CERA Designation

5. CERA • Benefits the worldwide actuarial profession • Strengthens international recognition of the actuarial profession’s ERM expertise • Promotes the development of more ERM actuaries • Presents new opportunities for actuaries • Notifies employers of actuaries’ risk management expertise • Advances the ERM (risk management) cause EPP Lecture 1: Introductions and Overview of CERA Designation

6. CERA Treaty • Multilateral agreement • Signed in November of 2009 in India • First globalactuarial credential • Governs the actions of the CGA including the CERA Treaty Board that it established • Every Treaty Signatory agrees to recognize every CERA’s right to practice in its “territory” • Every Treaty Signatory agrees to market the CERA EPP Lecture 1: Introductions and Overview of CERA Designation

7. CERA Global Association (CGA) • Founded on 7 May 2010 (Switzerland) • CERA Treaty Board – operational body • CGA Board & CGA General Assembly • Treaty Administrator – IFA (UK) • Funded by Treaty Signatories • Marketing – branding, website, Linkedin, Facebook, newsletter, etc. EPP Lecture 1: Introductions and Overview of CERA Designation

8. CERA Global Association (CGA) • Grants Award Signatory status to actuarial associations • Applicant can meet requisite obligations • Provide CERA education directly or indirectly • Has Continuing Education strategy • Is a Full Member Association of the IAA • Review Panel conducts an rigorous review of the association’s CERA program • Initial • Follow-up reviews • Associations award CERA to qualified actuaries • Reviews Syllabus & Educational Standards every 3 years • Accepts new CGA members (Treaty Signatories) • Maintains website (www.ceraglobal.org) EPP Lecture 1: Introductions and Overview of CERA Designation

9. CGA Members (Countries)/Treaty Signatories (14 = 5 continents) • Australia* • Canada* • Chinese Taipei (new) • France* • Germany* • Israel • Japan* *Award Signatories • Mexico • Netherlands* • South Africa* • Sweden* • UK* • US (CAS* & SOA*) EPP Lecture 1: Introductions and Overview of CERA Designation

10. How do I qualify to become a CERA? • Achieve “Fully Qualified Actuary” educational status according to the IAA • Satisfy learning objectives of the Treaty • By examination or • By educational courses • Award Signatory (A. S.) is satisfied that the candidate has not been subject to any disciplinary actions that might tarnish the CERA designation • Adhere to Code of Professional Conduct of the A. S. • Provided written consent in perpetuity for the free exchange of information on disciplinary matters • “Meet” continuing education requirements of the actuarial association to which the CERA belongs • Agree to cease to use the designation if it is withdrawn EPP Lecture 1: Introductions and Overview of CERA Designation

11. Experienced Practitioner Pathway (EPP) • Recognize experienced ERM practitioners • CGA benefits from their becoming CERAs because of their expertise/reputation • One-time opportunity • Short-term program • Limited number of CERAs from this program EPP Lecture 1: Introductions and Overview of CERA Designation

12. Withdrawal of CERA by Award Signatory • Permanent or temporary • Violates the Code of Conduct of Award Signatory (A. S.) • Fails to pay appropriate fees to the A. S. • A. S. receives relevant information that results in the A. S. withdrawal of the CERA • A. S. advises all Treaty Signatories of the withdrawal EPP Lecture 1: Introductions and Overview of CERA Designation

13. CERA Value Proposition “CERAs develop effective solutions for the risks and opportunities of their clients” • Uniquely qualified to address all types of risk • ERM qualitative & quantitative aspects • Integrating diverse insights into business solutions • Professional standards of conduct • Public • Their clients and employers • Actuarial profession • Businesses that rely on CERAs • Make more confident decisions related to complex ERM challenges EPP Lecture 1: Introductions and Overview of CERA Designation

14. Why is International Important? • Financial crisis demonstrated how national economies are interdependent • Need for strong technical skills • Professional and ethical behavior • Many large entities are global or multi-national • Actuaries play a growing role in financial conglomerates and banks • Solvency II sets up an actuarial function within most major financial institutions; actuaries should also contribute to entity’s risk management • CERAs should be able to move freely across borders to meet growing and varying demands by country EPP Lecture 1: Introductions and Overview of CERA Designation

15. Role of International Actuarial Association (IAA) • Does specify the minimum level of actuarial education that an association has to satisfy to be a full member • Does not provide any actuarial designation • Is a strong ERM supporter with its supranational ties • International Association of Insurance Supervisors (IAIS) • NAIC is an IAIS member and is influenced by IAIS actions • NAIC has its Solvency Modernization Initiative (SMI) • Pursues acceptance of CERA by regulators EPP Lecture 1: Introductions and Overview of CERA Designation

16. CERA Transfer of Supervision • Some CAS members, who received the CERA from the SOA, want to drop their SOA membership/dues and want to be under CAS CERA supervision • Is likely to be more popular in Europe and Asia • Need mutual agreement of both associations • Ensure that there are no outstanding discipline issues EPP Lecture 1: Introductions and Overview of CERA Designation

17. CAS & CERA • Treaty Board approved CAS as an Award Signatory (2011) - standard (exam) route • ACAS • Exam 7 - Policy Liabilities, Insurance Company Valuation & ERM • Exam 9 - Financial Risk and Rate of Return • ERMM Seminar (2 sessions per year) – ERM & modeling • IFA (UK) ST-9 exam • Redevelop/Resubmit the P&C route to CERA? • Experienced Practitioner Pathway (EPP) • Fewer than 100 CERAs EPP Lecture 1: Introductions and Overview of CERA Designation

18. CAS & CERA • CGA member • CAS • VP-ERM • CAS ERM Committee • Admissions Committees • Research Committees • Continuing Education • Marketing • Joint Risk Management Section • ERM Symposium EPP Lecture 1: Introductions and Overview of CERA Designation

19. CAS & CERA & You Volunteer; get involved! • Invest in your future • Invest in your CERA • Invest in your employer • Invest in your profession EPP Lecture 1: Introductions and Overview of CERA Designation

20. Actuarial Education Syllabus Developed by the IIA • (Basic Actuarial Syllabus) • Financial Mathematics • Probability And Mathematical Statistics • Economics • Accounting • Modeling • Statistical Methods • Actuarial Mathematics • Investment And Asset Analysis • Actuarial Risk Management • Professionalism EPP Lecture 1: Introductions and Overview of CERA Designation

21. CERA Learning Objectives(Beyond Basic Actuarial Syllabus) • ERM Concept and Framework • ERM Process • Risk Categories and Identification • Risk Modeling and Aggregation of Risk • Risk Measures • Risk Management Tools and Techniques • Economic Capital EPP Lecture 1: Introductions and Overview of CERA Designation

22. Bloom’s Taxonomy of Levels of Learning • Knowledge - Define • Comprehension - Describe • Application - Demonstrate • Analysis - Calculate • Synthesis - Develop • Evaluation - Assess EPP Lecture 1: Introductions and Overview of CERA Designation

23. Key ERM Dates before CERA Treaty • CAS ERM Advisory Committee - 2000-2001 • CAS ERM Committee – 2001+ • Seminal paper, “Overview of ERM” - 2003 • Joint Risk Management Section - 2004 • Joint CAS/SOA ERM Symposium – 2005+ • CAS VP-ERM – 2005+ • CAS ERM vision • ERMII (ERM Institute International) – 2007+ • CERA designation (SOA) – 2007+ EPP Lecture 1: Introductions and Overview of CERA Designation

24. Appendix - Learning Objective EPP Lecture 1: Introductions and Overview of CERA Designation

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