SOA Board approves new ASA-level enterprise risk management designation in support of strategy to position members for new opportunity

• For Immediate Release: December 2, 2005
• Contact: Joel Albizo
• 847.706.3560

Turn Risk into Opportunity

At its November 12–13 meeting the Society of Actuaries' Board of Governors approved a new ASA–level enterprise risk management designation. This new designation was designed to help members exploit enterprise risk management (ERM) opportunities. ERM, the systematic process of identifying, evaluating, and managing the full range of risks borne by an enterprise, was rated by members as the highest priority strategic initiative in the 2005 member and candidate survey (8.0 on a scale of 10). The SOA's enterprise risk management strategy seeks to position the actuary as the preeminent profession in this evolving discipline in order to create new opportunities in both traditional and broader financial services markets. Exploration of an ERM credential was a key component of this Board–approved strategy.

"Our ERM Credential Task Force, led by Kathy Wong, FSA, presented the Board with a well–thought–out framework for this designation–from the educational requirements to the market positioning," said SOA President Bob Beuerlein, FSA, adding that the organization will work to differentiate this risk management–focused designation in the marketplace from the "traditional" ASA so that employers can fully value this new designation. The SOA is working to develop additional information to answer basic questions from members, candidates, and employers.

The Board also approved a 2006 budget that will fund key, member–endorsed strategic initiatives such as the ERM strategy, designed to preserve and enhance the value of the ASA and FSA credentials and to create new opportunities in both the traditional and broader financial services markets, and reviewed a series of recommendations and actions to address challenges and opportunities identified in the member survey.

"Our recent member survey has reinforced the importance of taking aggressive action to meet our members' expectations," said SOA President Beuerlein, "and our strategy management system, governance, finances, and operations are being aligned to produce results," adding that the SOA would produce regular progress reports to the membership.