Description: Increasing uncertainties and volatility in financial as well as real goods markets increasingly reveal that controlling systems based on deterministic and pseudo-exact values are insufficiently eligible to manage the business activities. This raises the question how management systems can be modified to generate the adequate management impulses in volatile periods. Risk management deals from identifying, evaluating and aggregating chances and risks, which again determine the potential fluctuation range of relevant performance indicators. Everyday corporate life shows that risk management is considered important; but the corresponding processes to identify, evaluate and report chances and risks are seldom part of established decision criteria. This “paradox” lets assume that risks are managed in various differing and unsystematic ways. The combination of traditional controlling methods and risk management is not primarily a methodological challenge. The behavior of the whole organization, practiced over a long-year period, has to be transferred into a new corporate culture of transparent dealing with chances and risks. This paper describes the necessary change management process, which has to come along with necessary methodological modifications.

Description: In this essay, we focus on the “Prospective Solvency Assessment” aspect of the NAIC’s ORSA. This places a spotlight on an insurer’s strategic decision making from a risk and capital management perspective. It requires those in senior management to describe actions they would take to address possible adverse changes in their risk and solvency position, i.e., what they would do to reduce risk, increase capital, and/or adjust the business strategy. We contend that by applying a slightly broader scope than the specific requirements of the NAIC’s ORSA, insurers can develop this into a valuable process to support risk-based decision making. In this essay, we initially consider how to determine which metrics to include in such a process and then discuss some important business requirements and practical challenges for implementing a calculation approach to support it. Part of the essay collection "Risk Metrics for Decision Making and ORSA"

Description: SOA executive director’s column, research on Asia insurance opportunities, e-courses, recent research and experience studies, and professional development opportunities.

Description: Background and overview of “Land This Plane,” a Delphi study undertaken by the Long Term Care Insurance Section and Forecasting & Futurism Section.

Description: The editorial reflects on the opportunities for professional and personal development involved in being a contributing editor for The Actuary.

Description: Chairperson’s column discussing a few of the important initiatives of the Financial Reporting Section

Description: Article Description * An update on developments and activities of the Smaller Insurance Company Section, including webinars, research, and an international strategy.

Description: The appeal of the actuarial profession to women.

Description: Latest in a series applying Buddhist philosophy to the working world of the actuary. The focus is on the author's experience in yoga teacher training.