Model risk is not as well defined and established as other more traditional risks, so the identification, understanding and communication of model risk is crucial.

A Model Risk research project was established by the Institute and Faculty of Actuaries Risk Management Research and Thought Leadership Committee in October 2013. This project was initiated by setting up a member-led research working party (the “Model Risk Working Party”).  The working party focused on key foundational areas on the subject including model risk definition, identification, management, culture, governance and measurement.  This culminated in a working party Report published in the British Actuarial Journal, and a series of presentations to key industry fora including an IFoA Sessional Meeting in London in March 2015.

Due to the positive reception of the findings of the working party by the profession (the Report earned the Peter Clark prize for Best Paper in September 2015), support was given to setting up a second phase of the working party.  New and existing members were invited to volunteer their interest to participate in this second phase.    

Key objectives of Phase 2:

  • Develop benchmark approaches for internal and external communications around model risk, to improve industry awareness and understanding of model risks
  • Build on work from Phase 1 to define a framework for measurement of model risk
  • Leverage good practice from other industries to enhance model risk management within the actuarial profession

Outputs:

Non Working Party related outputs:

Chair: Rob Black
Membership: 12
Established: 2013

Related documents

Contact Details

If you want more information about this research working party please contact the Communities Team.

professional.communities@actuaries.org.uk

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  • Spaces available

    A panel discussion with investment representatives discussing the impact of investment on climate change and vice versa.

    This event is part of The Road to Glasgow: IFoA’s Sustainability Thought Leadership Series which will provide a platform for prominent contributors so that our members and others can understand the perspectives of a wide range of parties interested in the climate debate.

  • Spaces available

    Climate change is one of the greatest risks facing our world today. Addressing it will require multi-faceted solutions. Through this panel session, we will explore the different levers that can be used to meet net-zero targets including climate science and data, government engagement, and mobilising green finance.

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    How governments and societies collectively respond to the climate crisis is increasingly being analysed through the lens of intergenerational fairness. Our expert panel will assess and explore the extent to which inter-generous fairness is being considered in climate policies, the lessons from those countries who are leading the way on fairness and justice in climate interventions, and more.

  • The Growth Mindset for Actuaries

    13 October 2021 - 8 December 2021

    Spaces available

    This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.

  • Spaces available

    The climate crisis and the degradation of our planet will affect societies everywhere. How we address these threats will require solutions that transcend borders. As a global profession, the actuarial community is well-placed to consider and propose effective risk management solutions to help manage the climate crisis.

  • Spaces available

    Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.