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Actuarial Risk Principles

'Risk management- an actuarial approach' is a high- level guide to measuring and managing risks while taking full account of the impact of stakeholder perspectives and system characteristics

Actuaries are well aware of the importance of risk management as an important tool to help reduce losses, control uncertainty and optimise decision making in order to improve outcomes

We believe that our training and experience gives us an excellent base for tackling risk management challenges.  It leads us to consider the full range of risks that might affect an organisation, and focus on measuring impacts, both positive and negative.  Actuaries are also used to analysis not just based on short-term horizons but potentially extending many decades into the future, and understanding how the impact of risks can be valued in financial terms where this is warranted.

Matt Gurden, Chair of the IFoA’s Wider Fields Working Party, introduces the Risk Principles framework

You can watch the video recording of the launch event for the Actuarial Risk Principles framework in June 2017, which includes presentations of three case studies.

Image of the Risk Principles cover
The IFoA’s Wider Fields Working Party, led by Matt Gurden, has developed the Actuarial Risk Principles framework in order to summarise the key aspects of an actuarial approach to risk management, and how they are inter-related

The risk principles document looks at how a multi-faceted approach to decision making can add value in both existing and 'wider' actuarial fields, by providing decision makers with a better understanding of the risks involved.  

It includes case studies in which topic specialists explore how these risk principles can be applied to analysing the risks implicit in three major issues of international scope:

  • Climate Change
  • Cyber Risk
  • Automated Vehicles

Risk principles and climate change

The first edition of the risk principles document was introduced in December 2016 alongside a successful webinar run in conjunction with the World Business Council for Sustainable Development, which discussed how the risk principles could be applied to climate change risk.  

Watch the Webinar on Climate Change Risk.

Related documents

Contact Details

For further information on any of our public affairs or policy work please contact us on:

policy@actuaries.org.uk

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Events calendar

  • GIRO 2020 Virtual Conference

    Available to watch globally in November.
    02-13 November 2020
    Spaces available

     

    This year's GIRO has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the general insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's GI Online Learning Resource area

  • Spaces available

    The webinar will discuss the challenges and opportunities schemes face in evaluating end game options, choosing a target state and understanding the impact this strategic decision could have on member outcomes long after the “end state” is reached. Adolfo, Kevin and Rhian bring over 60 years of experience in the industry and a variety of perspectives as scheme actuary, covenant adviser, trustee, de-risking adviser and insurer.

  • Spaces available

    Retail banking is going through a period of substantial change as it moves into the digital age. Banks have large amounts of data about their customers and about their risks. Open data application programming interface (APIs) and data science are enabling banks to use their data to offer innovative and sometimes personalised services. Data science is also adding value in risk areas such as fraud detection and cyber security. At the same time, the move to online banking is making it easier for firms including fintechs to enter banking without having to establish branch networks.

  • Spaces available

    Cash-flow driven investing is a game-changer for DB pension funds navigating their end-game. Suitable for sponsors who want to reduce risks on their balance sheets. And for trustees, it shifts the focus to providing greater certainty of returns, managing funding level volatility and ensuring they have enough income to pay cash-flow requirements.

  • Spaces available

    Patrick Kennedy, Partner at Gateley Legal and Founding Director of Entrust (a leading professional pensions trustee company), will be delivering an update on the latest legal developments during the course of 2020. With both a pensions legal perspective and over 25 years of trustee service, Patrick will seek to highlight how the letter of the law has continued to evolve against the backdrop of a difficult and challenging year

  • Spaces available

    The talk will provide an understanding of the priorities and relationships between deficit reduction contributions, in the context of wider scheme funding, and different types of value outflow from the employer based on the working party’s recently published report. 

  • Spaces available

    Covid-19 has required an urgent and cross-practice initiative to facilitate the extensive impact this pandemic has across all industries. IFoA members have been keen to contribute in a different way, so we developed the IFoA Covid-19 Action Taskforce [ICAT] to coordinate our effort, with a more efficient governance.

    We have over 500 volunteers and countless topics which we have amalgamated into 93 workstreams.