Description: ERM has methodology for quantifying the risk to capital, but to determine optimal capital, the impact of capital level on firm value is needed. This gets into the realm of valuation. Also capital allocation provides risk quantification for business units, but comparing return among units is fundamentally a risk-pricing exercise. When considering risk pricing, optimal returns on allocated capital are not necessarily constant across business units. The current ERM methodology, as well as actuarial literature on valuation and pricing, are reviewed, and possible directions for application of pricing and valuation methods to risk management problems are outlined.

Description: This is a discussion of the paper, Actuarial Note: The Valuation of Self-Insured Retirement Plans by Joseph C. Noback. From Transactions of Society of Actuaries 1950, Vol. 2, No. 4.

Description: Many of the innovations and methods required to improve retirement security exist, but have not been pulled together into an integrated solution at scale.

Description: Accurate determination of the appropriate time to retire and replace a physical asset is important for large ensembles of such assets when taken as a whole, and concerns the fate of tens of trillions of dollars in assets, such as airplane engines, vehicles, or any other kind of physical asset susceptible to obsolescence. A decision model to accomplish this is derived using the concept of actuarial present value applied to an economic theory of cost minimization. Since this is a theory coupling investor wealth creation with the long-term optimization of the use of scarce resources, it can also be offered as an economic model relevant to sustainability.

Description: This paper measures the extent to which specific firms have implemented ERM programs and assesses the value implications of these programs. We find a positive relation between firm value and the use of ERM. The ERM premium is statistically and economically significant and approximately 17 percent of firm value.

Description: This web page contains a link to the Retirement Probability Analyzer software which was created by Professor Moshe Milevsky and the Individual Finance and Insurance Decisions 'IFID' Centre. The software explores in great detail the fundamental question of whether one will run out of money before dying, while maintaining a desired standard of living. The software has been written to compute probabilities associated with a variety of retirement investment and spending strategies. It is intended to serve as a pedagogical tool to help the user develop an intuition for the impact of various asset allocation and annuity purchase decisions. The software is not intended as a comprehensive retirement planning tool and should not be used, under any situation, for this purpose.

Description: Meeting with the Internal Revenue Service/Treasury October 11, 2017

Description: Impact of low and negative interest rates on various aspects of insurer operations including product management, investment management and capital management.

Description: This article is about the past tendency of actuaries to play bridge and the linkages between bridge and actuarial exams.