Risk management teams needed at super funds and insurers
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| Melinda Howes
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The Institute of Actuaries of Australia has called for cross-disciplinary risk management teams in large financial services companies such as super funds, insurance companies and banks.
Speaking at the Risk Management Institution of Australasia conference in Sydney this week, institute chief executive Melinda Howes said there should be at least one relevantly qualified, skilled and experienced risk management professional on the board of large financial services companies.
Management teams could be strengthened by a diversity of skill sets from different professional backgrounds, Howes said.
“We see actuaries as having different and complementary skills to other risk professionals, a different way of thinking about risk, advanced risk analysis skills, and experience in dealing with boards,” she said.
Financial risk was the greatest risk factor for large financial services companies, meaning actuaries were well placed to fill such a role, she said.
“It is vitally important that risk managers have business experience, and high quality training and certification,” Howes said.
“As a professional group, actuaries are supported by strong standards to ensure the quality of their analysis and advice. These skills have been recognised by the regulatory requirement for life insurers, general insurers and health insurers to appoint an actuary to advise on their financial condition and to sign off on their risk management frameworks,” Howes said.
The modelling techniques used by actuaries were now applied to non-financial risks such as operational risk, and financial services chief risk officers were actuaries, she said.
Howes said risk management was a business critical value-add to management and boards rather than a compliance cost.
AUTHOR
Mike Taylor
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