Regulators publish current risks to high quality actuarial work

Feb 07, 2018
In a recent report, the Joint Forum on Actuarial Regulation (JFAR) has highlighted 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. 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), which enables JFAR to identify and review the macro environmental drivers, risks inherent in actuarial work and the market characteristics that lead to an increase in risk.

Stephen Haddrill, CEO of the Financial Reporting Council 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."

Through the Risk Perspective, JFAR seeks to raise awareness and generate discussion about the current and emerging risks to quality actuarial work. It invites feedback by email to RiskPerspective@frc.org.uk and will hold stakeholder outreach events during 2018.

Source: Financial Reporting Council.