Description: This article argues that wealth managers should advocate dynamic spending in proportion to survival probabilities, adjusted up for exogenous pension income and down for longevity risk aversion. The authors criticize the rule of thumb of spending a fixed 'x' percent of assets for retirement planning purposes.

Description: Insurers can leverage information from their required Own Risk Solvency Assessment (ORSA) and use it internally to improve the likelihood of solvency and gain a competitive advantage.

Description: When companies engage in risk management activities, they can be seen as modifying their distributions of future outcomes. Often, this takes the form of trading off a sure cost for a decrease in some potential risk of loss. Companies may carry out these activities with several goals in mind, such as reduction in earnings volatility or preservation of capital. This paper will demonstrate a method for evaluating possible strategies by dividing the effects on costs and risks into three tranches: earnings, impact and estate. The tranches can be associated with different interests of the various stakeholders. This trifurcation analysis can help to explain the risk-reward trade-offs of different risk treatment alternatives and can aid in risk-related decisionmaking.

Description: Article from Risk Management Newsletter, November 2005, Issue 6 on the elicitation and elucidation of risk preferences. The report’s intent is to raise awareness of the benefits of formally eliciting risk preferences for a company. This effort can lead to a mutually agreed upon framework for evaluating potential trategies. Introductions to techniques and references are provided to aid interested readers in pursuing the subject further.

Description: Summary of recent surveys to life actuaries regarding assumptions surrounding policyholder behavior in the tail for universal life with secondary guarantees and minimum guarantees on variable annuities. This information is intended to examine and ultimately give guidance to actuaries on how to set policyholder assumptions in extreme scenarios.

Description: In this article, the authors discuss “Risk Management – Principles and Guidelines” is the title of the new international standard on the practice of risk management. This article compares and contrasts the two ERM frameworks ISO 31000 2009 and COSO - ERM.

Description: On behalf of the Society of Actuaries, the Casualty Actuarial Society and the Canadian Institute of Actuaries, we are pleased to provide a series of essays on Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications. This e-book is the result of a call for essays on the subject coordinated by a variety of actuarial groups. This is the introduction to the book of Essays. See the SOA web site for the full series of essays.

Description: Models are imperfect approximations of reality. Once a bubble has been recognized, that’s the time for mechanisms of caution and prudence to kick in, even in the face of exuberance – especially in the face of exuberance. Liquidity and trust is plentiful until it’s not – it can evaporate with blazing speed and only returns slowly. Risk is contagious, which means every single employee and citizen has a vested interest in taking on the role of chief risk officer.

Description: Read the February 2020 issue of Risk Management, published by the Joint Risk Management Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: This article provides background and key results of the Risk Premium Project of the Committee on Theory of Risk [DOTOR] of the Casualty Actuarial Society [CAS]. The project is intended to gather research on risk issues and encourage further development.