Enterprise Risk Management (ERM) Module to Launch July 2, 2012

As previously announced, the Society of Actuaries (SOA) has developed a new pathway for candidates seeking the Chartered Enterprise Risk Analyst (CERA) credential. As part of the new CERA pathway a new ERM Module will replace the Operational Risk Module on July 2, 2012.

If you are currently registered for the Operational Risk Module and have questions about the transition you can learn more here.

The ERM Module provides the bridge between the introductory ERM material covered in the Fundamentals of Actuarial Practice (FAP) course and the detailed material covered in the ERM exam. The module topics include:

  • Introduction to enterprise risk management – what it is, why it is needed, who is involved, where it is needed and how it works.
  • Developing an ERM framework – risk maps, risk appetite, risk aggregation, strategic objectives, culture and organization.
  • Regulatory and rating agency requirements – including Solvency II and Own Risk and Solvency Assessment.
  • Defining, identifying and evaluating operational risks – including varying approaches, key risk indicators, sources and cost of risk.
  • Data issues – types of data, internal versus external data and data validation.
  • Risk measurement approaches – risk measures, extreme value theory and scenario and stress testing.
  • Economic capital – development and analysis of an economic capital model using a case study.
  • Putting it all together – summary of prior sections and how they bring a strategic focus to risk management.

Read more about the SOA’s CERA Pathway Changes

Inquiries may be sent to education@soa.org.