The Global CERACredential
Presented to:
Institute of Actuaries of Japan
2 August 2010
S. Michael McLaughlin, FSA, CERA, SOA President

A Global Credential

CERA as a Global Credential
 Idea emerged from discussions at meetings ofthe International Actuarial Association and theinternational Presidents’ Forum The SOA’s CERA credential viewed as a model
for a global credential

33History in the Making
 In November 2009, the SOA and 13 actuarialorganizations signed a treaty to establish SOA’s
CERA credential as the globally recognized ERMcredential
 First time (we believe) in any profession thatmultiple organizations have joined to offer aspecialized credential!

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Global CERA Treaty

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Overview

ERM DefinedEnterprise Risk Management is the discipline bywhich an organization in any industry assesses,
controls, exploits, finances and monitors risks
from all sources for the purpose of increasing theorganization’s short- and long-term value to its
stakeholders.

88Enterprise Risk Management Growing need for organizations to link theirrisks across their business units and adopt
a more comprehensive framework
 ERM is the process of risk analysis andmanagement across an entire organization
 ERM is a combination of risk models andgovernance99

A New Risk Credential
 The Society of Actuaries (SOA) identified
the need for a new credential todemonstrate ERM competence in the
traditional and broader financial services
marketplace In June 2005 the SOA Board approved thedevelopment of new risk credential

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CERA Introduction
 The CERA credential is the first new
professional credential to be introduced bythe SOA since 1949
 Currently there are 662 CERAs in theworkforce

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CERAThe Chartered Enterprise Risk Analyst (CERA)
credential encompasses the mostcomprehensive and rigorous demonstration ofenterprise risk management (ERM) expertiseavailable.

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BenefitsGlobal Marketplace Benefits
 Enables organizations to be transparent
 Helps companies meet financial reporting andcontrol requirements
 Addresses security and technology issues
 Prepares for disaster and business continuity in
post-9/11 world
 Helps companies remain competitive in a global
marketplace

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Employer Benefits
 Increases value of human capital through ERMexpertise Helps internal ERM program Helps implement clients’ ERM programs Differentiates firm as ERM experts
 CERAs possess strong quantitative and financial
assessment skills
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16Candidate Benefits The most comprehensive and rigorous ERM
training available
 Enhance exposure to the C-suite Differentiates them from other risk
professionals
 Advances the field of ERM
 Expands professional network
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Significance of CERA Credential
 ERM is a best practice Brings consistency and standardization
to ERM practice Expands actuarial skill set intonontraditional sectors, such as Broader
Financial Services

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CurriculumCurriculum Approximately 3-4 years to obtain theCERA credential
 Includes actuarial science, ERM principlesand professionalism

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Chartered Enterprise Risk Analyst(CERA) Credential for ERM

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Global CERA Credential
Strategy and Operations

Strategy Facilitate free movement of actuaries
internationally Increase the influence of the actuarial
profession in the sphere of enterprise riskmanagement
 Allows CERAs to have an internationallyrecognized credential2323

Operations
 Treaty Board established, meets byconference call twice monthly
 Each participating actuarial organization
appoints a member to serve a three-yearterm CERA Global Association (CGA)
established using a verein model on
7th May 201024
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Operations
 Efforts are now underway to complete thetransfer of the SOA intellectual property in theCERA to the CGA
 U.K. application was approved for award
signatory status
 Four organizations are in queue for review of
their applications to be award signatories(Australia, CAS, Netherlands and South Africa)

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Operations
 Website is in development Design of a standard certificate is underway
 Forming a PR group to develop a publicity
program to promote the CERA global credential

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Quality Assurance
 Review Panel established to ensure strong
quality assurance program to maintain the valueof the credential
 Will review participating associations’ processes
used in qualifying candidates for the credential
 Thorough review of learning objectives, syllabus
and learning materials
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Quality Assurance
 Annual review to include testing processes, passrates and quality assurance In-depth review every three years

2828Resources

3030Broader Roles for Actuaries

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Opportunities for Actuaries
 Actuaries’ existing skills are underutilized!
• Cell phone contract• Natural gas utility• Sports statistics• Airline pricing

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Opportunities for Actuaries
 ERM
 Broader industries
 Analytics
 Public voice Working with otherorganizations
 Increased
international focus
 Better communication

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SOA Strategic Initiatives
 Improved Communications
 Global CERA
 Intellectual Capital
Framework Inter-organizational
Synergies
 International Membership
Strategy Leadership Development
Program Marketing & MarketDevelopment Plan
 Professional Development
Redesign Role of Academia Untapped Opportunities inthe Health Industry
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SOA Operational Initiatives
 Centers of Actuarial Excellence
Program Fellowship Exams Twice aYear

 Continuing Professional
Development: Attestation &Audit Rapid Retirement ResearchPilot

 Enhanced Communications
Planning
 Knowledge Management
Blueprint

 SOA Risk Committee Migration to New Database
 PCI Compliance for Credit
Card Processing

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Questions

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Thank You!

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