Risk management

About Enterprise Risk Management

Enterprise Risk Management (ERM) is the process by which organisations in all industries assess, control, leverage, finance and monitor risks, from all sources to increase the organisation’s short-and-long-term value to its stakeholders.

The growth of ERM

Against the backdrop of international risk management developments, the evolution of regulatory frameworks and recognised interdependency of risks in the financial world, the need for strong ERM has gathered considerable momentum in Australia.

The role of actuaries in ERM



As experts in risk and uncertainty, actuaries are natural leaders in Enterprise Risk Management in:

• Insurance – pricing, reserving, setting risk appetite, monitoring, supervision and risk reporting.
• Banking – pricing, operational risk and credit risk modelling and assessment.
• Superannuation and wealth management – risk management framework design and implementation, prudential standards advice, unit pricing process risk advice and asset liquidity risk assessment.
• Utilities – establishing risk appetite statements and oversight of trading.
• Education – advice on risk management and related ongoing governance.
• Other businesses – assessment of strategic, reputation, financial, product, operational and other risks and opportunities.

Actuaries are expanding the horizon of activity in the risk management space to meet the growing needs of the wider business world while simultaneously using the skills of the profession’s growing membership to provide practical, stimulating and well-rewarded employment.

Chartered Enterprise Risk Actuaries (CERAs)

CERAs are the risk professionals best qualified to lead an organisation’s ERM program. Find out more about becoming a Chartered Enterprise Risk Actuary.