Hyderabad Treaty launches new risk management credential globally

The launch was marked by Ronnie Bowie, President of the Faculty of Actuaries, and Nigel Masters, President of the Institute of Actuaries, signing a multilateral treaty in Hyderabad, India, during meetings of the International Actuarial Association (IAA). The treaty was signed by 14 IAA member associations based in 12 countries around the world, including many of the major world economies.

Since the G20 meetings in Pittsburgh, the concept of combining strong technical skills with professional standards of conduct has been gaining ground. This credential, and the discipline it represents, addresses that need directly.

The credential will be awarded through qualified participating associations, and will incorporate and adopt the name of the highly respected CERA qualification currently issued by the Society of Actuaries (SOA) in the United States. It will identify actuaries who meet stringent education requirements in enterprise risk management (ERM) and are governed by a strong code of professional conduct.

Fred Rowley, Chairman of the Global CERA Steering Group, said: “The demand for highly qualified professionals in this field is growing rapidly as management and boards recognise the need for substantially improved risk management. Markets and regulators are demanding better and more informed decision making and risk controls.”

“The SOA CERA qualification has confirmed a strong demand for the qualification and provides a firm foundation of insights and experience for the new global designation. The signing of this treaty builds strongly on this demand through the adoption of an updated syllabus and agreements on the recognition of the participants’ education systems.”

S. Michael McLaughlin, SOA President, said: “The technical standards of the qualification establish a benchmark for rigour and quality assurance. The syllabus is comprehensive and addresses the important challenges posed by the current financial pressures, across all major sectors. We are confident that it will satisfy the risk management needs of enterprises and the public they serve, around the world.”

Colin Ledlie, chairman of the Actuarial Profession’s enterprise risk management executive committee, said: “The Actuarial Profession is delighted to support the new global CERA credential. Our recently launched enterprise risk management examination was developed to be consistent with CERA and provides an excellent means for actuaries to develop their skills in the growing field of enterprise risk management. The global recognition of the CERA qualification will be a positive benefit to actuaries in the UK and the high quality of the credential will support the profession's objective that actuaries are recognised as leading professionals in the field of enterprise risk management."

Speaking at the launch, IAA President Mr Katsumi Hikasa said: “The IAA is pleased to see this initiative on the part of 14 of its full member associations. This combination of technical skills and professional governance will ensure that all actuaries awarded the credential are fully equipped to face current real-world challenges.”

A full list of participant associations follows:

• Actuarial Society of South Africa (South Africa)
• Het Actuarieel Genootschap (Netherlands)
• Canadian Institute of Actuaries/Institut Canadien des Actuaires (Canada)
• Casualty Actuarial Society (USA)
• Colegio Nacional de Actuarios A.C. (Mexico)
• Deutsche Aktuarvereinigung e.V. (Germany)
• Institut des Actuaires (France)
• Faculty of Actuaries (UK)
• Institute of Actuaries (UK)
• Institute of Actuaries of Australia (Australia)
• Institute of Actuaries of Japan (Japan)
• Israel Association of Actuaries (Israel)
• Society of Actuaries (USA)
• Svenska Aktuarieföreningen (Sweden)

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Enquiries: Tel. Freya Rodger on 020 7632 1452 / 07798 804 871 or email freya.rodger@actuaries.org.uk

Notes to Editors

1. The CERA credential was launched in 2007 by the Society of Actuaries in the USA. It has so far been awarded to over 500 members of the Society.
2. Through the Treaty, CERA will now become a global credential, to be awarded by actuarial associations around the world.
3. The Treaty prescribes a comprehensive syllabus for the CERA credential, encompassing:

• The ERM concept, framework and process
• Risk categories and identification
• Risk measurement
• Risk modelling and aggregation of risks
• Risk management tools and techniques
• Economic capital,

in addition to the IAA core syllabus for actuaries, which itself covers many of the mathematical techniques needed to quantify financial risks. To ensure consistent quality, the depth to which each syllabus objective should be covered is specified in the Treaty.

1. The parties to the Treaty are all full members of the IAA, and have agreed to recognise the CERA credential. It is expected that other IAA members will apply to accede to the Treaty once it has been implemented fully.
2. All of the signatories to the Treaty have expressed an intention to award the CERA to eligible members as soon as practicable. The credential may be awarded on the basis of examinations set by Treaty signatories or accredited university degrees. Approval to award the credential will be subject to a rigorous quality control process, including an initial review of syllabus coverage and examination standards and regular subsequent reviews.