2025 SOA Valuation Actuary Meeting: Session 9B: A New ASOP for ERM – What to Know About it, and Practical Implications-08.20.26 Recording

In 2021, the Actuarial Standards Board (“ASB”) of the American Academy of Actuaries approved the re-grouping of the Enterprise Risk Management (“ERM”) Committee of the ASB to review the existing Actuarial Standards of Practice (“ASOPs” ) as they related to ERM, and assess whether they were still appropriate and relevant in the light of developments and changes in practices over the years. Most notably ASOP 46, Risk Evaluation in Enterprise Risk Management, and ASOP 47, Risk Treatment in Enterprise Risk Management, were prepared at a time when ERM as a field of practice for actuaries was in fledgling form, with a relatively small number of actuaries having experience in the area. However, in the years since, actuarial practice in the field has evolved considerably. Moreover, ERM nomenclature has also evolved. Coming out of the work of the work of the regrouped ERM Committee of the ASB, ASOP 58, Enterprise Risk Management, has been developed. It was approved by the ASB in December 2024 to replace ASOP Nos. 46 and 47 to better reflect today's ERM practices and terminology, and to align with ASOP No. 55, Capital Adequacy Assessment. The new ASOP will be effective May 1, 2025.ASOP 58 applies to valuation actuaries subject to ASOPs as promulgated by the ASB when performing actuarial services with respect to developing, maintaining or reviewing all of part of an ERM framework.In this session, panelists will give an overview of the ASOP, and discuss its practical implications. Panelists will include one or two members from the drafting committee, plus one or two senior risk practitioners who will highlight how the ASOP has impacted their work.