Learning/Skills Goals – 1
A CERA-holder will have a thorough understanding of
- the concept of ERM
- the drivers behind ERM – governance, regulation, improvements in understanding of risk and techniques for measuring and managing risk, enterprise value protection and creation etc
- practical aspects of ERM, including all elements of a robust risk management framework and its operation, and critical success factors
- standards and good practice in use around the world
- the different types of risk – financial, insurance, operational, and strategic
- the quantification of risk, including tools and techniques and supporting mathematics
- practices and techniques for the management of risk, including control, mitigation, transfer, avoidance, and exploitation of risk opportunities
- the economic value added by sound ERM
- important regulation and regulatory capital requirements
Learning/Skills Goals – 2
For the risks that can currently be modelled effectively, a CERA-holder should be proficient at the following tasks:
- Independently develop reasonable models to quantify risk by type & in aggregate
- Parameterise the models appropriately
- understand when historical data is applicable
- know when and how to apply current values
- Be able to apply informed judgment
- Run the models to obtain relevant results
- be able to focus on the key metrics
- select appropriate number of iterations
- be able to update the model as necessary
- Explain the models and the results to a variety of audiences, other technical ERM experts, managers of specific types of risk, individuals such as the CFO, CEO and board members
Learning/Skills Goals – 3
In addition, a global CERA-holder should be able to do the following:
- Implement the basic steps in the risk management process for any individual type of risk and in aggregate
- Recognise how corporate governance issues can affect risk management within an organisation, including organisation structure and remuneration incentives to accept or control risk
- Use the standard methods for reporting risk to boards and senior management
- Calculate regulatory capital requirements for insurers and banks
- Understand how rating agencies incorporate risk management in determining ratings
- Implement and explain economic capital models within an organisation
