Archive Fall 2012: Updates – Enterprise Risk Management (ERM) Exam

Oct. 10, 2012

  • Earlier versions of the case study had conflicting information about the leadership of Simple Life. The prior version had, on Page 12:
    R. Tomas Lyon IV is the Chairman, CEO and President of Simple Life since 1996. He was an insurance broker and President for Risky Life Insurance Company. He has been a director since 1996.

    The corrected version is:
    R. Tomas Lyon IV has been a director of Lyon Corporation since 1996. He was an insurance broker and President of Risky Life Insurance Company.

    The version distributed with the examination has this correction.


Sept. 17, 2012

  • The following two statements are in response to questions regarding the grading process for the ERM exam.

    Passing or failing the exam will be based on the total score earned over all questions. There will be no minimum score required for the core or extension questions.

    The intent is to make the questions of similar difficulty for each extension, and the expectation is that pass marks for each extension will be similar. Our examination system uses content-based pass marks, with the goal of passing candidates who demonstrate adequate knowledge of the syllabus material. As with all fellowship examinations, the examination committee will determine the final pass mark by balancing actual performance statistics against the expected level of adequate knowledge. This will be done separately for each extension.


Aug. 23, 2012


Aug. 15, 2012

  • The case study been updated. This version will be distributed with the examination.


Jun. 27, 2012

  • The case study for the Fall 2012 session is now available.


Jun. 21, 2012

  • The SOA was unable to secure permission to include in the study note package three of the readings for the general insurance extension. As a result, the following readings have been removed from the syllabus:
    • ERM-701-12: Risk-Adjusted Performance for P&C Insurers, Pages 8–46
    • ERM-703-12: Overview of Enterprise Risk Management, Pages 14–32
    • ERM-704-12: Value of Risk Reduction
  • The following reading has been added to the syllabus. It will be included in future mailings of the study notes and sent separately to those who have already ordered them.
    • ERM-705-12: P&C RAROC: A Catalyst for the Improved Capital Management in the Property and Casualty Insurance Industry