08 February 2018

FRC: Regulators publish current risks to high quality actuarial work

In a report, the Joint Forum on Actuarial Regulation (JFAR) highlighted current risks to high quality actuarial work. The Risk Perspective identifies nine ‘hotspots’ where there is a perceived increase in risk to the public interest where actuarial work is central.

These include political and legislative risk, market performance and uncertainty, climate-related risk and technological change.  The JFAR also recognises common themes that cut across the hotspots such as professionalism, intergenerational fairness and Brexit.

The Risk Perspective is intended to raise awareness of the importance of high quality actuarial work in mitigating risks to the public interest and to focus actuaries on the right risks so as to perform their work to the highest quality. In today’s fast-changing world, the report explores the implications on actuarial work of people living longer, rising environmental concerns and technology advancing at an unprecedented pace.  

The perspective was developed using a new Actuarial Risk Identification Architecture (ARIA).  The ARIA enables JFAR to identify and review the macro environmental drivers, risks inherent in actuarial work and the market characteristics which currently lead to an increase in risk. 
Stephen Haddrill, CEO of the FRC and Chair of the JFAR, said:

In this ever-changing world, actuaries make judgements to measure and manage risk and uncertainty, adapting their work to respond to these challenges. We believe that the Risk Perspective will support actuaries, their employers and users of actuarial work to consider current and emerging risks in their activities. 

Full press release

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