Last Updated on 20/04/2020 by Tom Evans
Are you interested in the CERA seminars offered by the European Actuarial Academy? Would you like to benefit from the content in your daily work?
Read our interviews with three speakers from the CERA modules to gain an impression of the most relevant content and the practical approach.
CERA, Module A: “Foundations and Quantitative Methods of ERM”, an interview with Rüdiger Frey
Rüdiger, why do you think the CERA education is so important nowadays?
Enterprise Risk Management (ERM) is an important issue for financial institutions and in particular for insurance companies as it incorporates risk management into the process of value creation. Moreover, ERM is at the forefront of many regulatory developments. Implementing a sound ERM system requires actuaries with a broad skill set. The CERA education with its mix of quantitative, qualitative and managerial modules is an ideal way for actuaries to acquire these skills and to obtain a formal certificate that demonstrates their qualification.
What is the special approach of CERA A by introducing participants to both concepts of qualitative as well as quantitative risk management?
CERA A lays the foundation for the CERA education. On the qualitative side, the module gives an overview of key concepts in ERM and it explains the role of ERM in the process of value creation. On the quantitative side, we provide key tools for ERM from quantitative risk management and financial mathematics and we explain their application in risk aggregation, interest rate risk management and credit risk management. Combining qualitative and quantitative topics give participants a good idea of the diversity of topics in ERM early in the CERA education.
What are the main learning areas of CERA A?
In the quantitative part, we cover risk measures, extreme value theory and heavy tails and models for dependent risks. Moreover, we discuss models for the management of interest-rate and credit risk. Topics discussed in the qualitative part include the concepts of risk and ERM, an overview over central elements of ERM, governance issues related to ERM and a session outlining how ERM creates value for any company.
CERA, Module C: “Processes in ERM”, an interview with Dorothea Diers
Dorothea, you are chairing the CERA module C. Why is this seminar so exceptional?
This seminar deals with the challenges of implementing ERM Processes in practice. We include many discussions of best practices with the participants and present numerous proposals and a case study giving examples for implementing an effective risk management.
Which aspects do you address in the case studies?
We present and discuss examples from practice, eg. how to define an organisation’s risk strategy, risk appetite, risk tolerances and limits, and of course we discuss how business strategy influences risk strategy and show their necessary interaction. In a detailed case study in non-life insurance, we demonstrate the close relationship between ERM and Value and Risk Based Management. We give examples how financial and other risks influence the selection of strategy, and we show how ERM can be appropriately embedded in an entity’s strategic planning and discuss the Own Risk and Solvency Assessment.
Why should actuaries attend this seminar?
We show many different aspects of ERM and which important role they play in Value and Risk Based Management. As actuaries in risk management we often are focused on quantitative aspects of measuring risks. In this seminar, we learn how to combine quantitative and qualitative risk management. In many discussions we work out how ERM capabilities can add value for our business and enhance business performance. Each company has defined its own way to implement ERM. We speak about the different priorities and aspects. So the lecturers as well as the participants get new insights and can profit from the intensive discussions during the seminar.
CERA, Module D: “ERM – Economic Capital”, an interview with Ralph Schuster
Ralph, you are chairing the CERA module D and are one of the keynote speakers. What do you consider to be special about your seminar?
We take up many topics from the other seminars and view them in the context of practical corporate management. All our lectures invite you to discuss and share your view on the topics and they essentially live on practical examples from everybody’s experience. In this spirit, we have also integrated various case studies into the seminar.
Which topics do you cover in your case studies?
We conduct a workshop on emerging risks that investigates the impact of a changing environment – such as for example an increasingly complex digital network – on a company’s risk situation and its profit expectations. In addition to that, we also have a broader case study from the life insurance side. Here, we discuss the impact of different steering strategies. Participants will explore a life insurance portfolio in more detail, understand its mechanisms and the limits of common key performance indicators.
What personally inspires you about the topic of the seminar?
I do find it fascinating how many different aspects converge in the topic of corporate management. As actuaries in the risk management, we are naturally focused on the risk aspect of things. However, of course, profit also plays a major role in corporate management. Each company sets the focus differently between these priorities, which often leads to very interesting impulses and discussions. These discussions are encouraged by the small groups at the seminars and they certainly broaden our view as trainers as well.
Do you have more questions on the CERA seminars? Please send an e-mail to [email protected], we will be happy to assist!