Description: The mismatch between how interest rate impacts the value of assets and liabilities could have material negative impact to companies’ earnings and surplus. To quantify and mitigate the impact of such mismatches, companies have used matching a combination of duration and convexity. I will review these measurement techniques and their limitations.

Description: The focus of this article is that while Economic Capital can be a valuable component of the ERM process for insurance companies, an over-emphasis on EC, to the point of neglect of other steps in the ERM process, can reduce the effectiveness of an ERM program.

Description: Article Book Review The Future Of Risk by Calvert in The Actuary, December 1979, Volume 13, Number 10

Description: The article explores the possibility of using the emerging technology for life insurers to build a monitor system for better risk and profitability management.

Description: Evan and Brad interview Larry Moews, Chief Actuary and Risk Officer of SCOR. The discussion focuses on Larry's insights and experiences in Risk Management.

Description: Much of enterprise risk management has its roots in portfolio management and corporate finance. The concepts of trading off risk and return and benefits of diversification are well understood and articulated in both the actuarial and economics fields, so I don’t believe there are significant knowledge gaps preventing actuaries from contributing to the field. In fact, actuaries may have an advantage in many situations where a large part of a firm’s overall risk arises from pension activities or other more typical actuarial risks.

Description: Update of the activities being carried out by the Joint Risk Management Section

Description: In this article, the authors discuss measuring and understanding the more holistic value of risk management. In particular, organizations are struggling with how to best determine the market value of risk management strategies.

Description: There will be inflection points in the value of an instrument when interest rates change. These inflection points could materially impact the approximation of value change using ALM metrics. In this part of the seven-part series, I will highlight: • How to identify the inflection points; • the range of rate changes where ALM metrics may be relied upon i.e., the “validity” range, outside of which recalculation of the ALM metrics is required and the potential that one needs to rebalance the portfolio; • a technique to improve on the approximation of value change beyond the validity range; and • a technique to convert non-linear change on the yield curve to be used with duration and convexity.

Description: This article discusses the actuarial profession and its role and needed skill set development going forward in meeting the needs of businesses for risk management and capital management