As a part of our international efforts, the Joint Risk Management Section has produced an international version of our newsletter, with articles excerpted from each edition that are of more general ERM related topics and less North American specific topics.
The international edition has then been translated into Mandarin Chinese and is being distributed through SOA, University and Business contacts in China.
INARM is the virtual coffee house for individual actuaries around the world
who are interested in sharing perspectives across borders on risk
management issues with others having similar interests.
INARM has caused some confusion and unnecessary concerns, because it has
a name “International Network of Actuarial Risk Managers” and a logo.
These do not make INARM into an organization, any more than the sign
over a coffee house makes it a branch of the government.
Let me assure you that INARM is not an organization. It has no bylaws,
no officers, no governance process. INARM cannot and will not take a
position on any topic whatsoever. Not on regulations, not on standards,
not on education, not on any specific risk management practices or on
the significance of any risks. There is no process by which INARM could
do anything like that and not even any definition of an INARM member.
Instead, INARM has participants. The participants are involved for as
long as they like at the level of intensity that they want. There is no
qualification for being a participant, just as there is no qualificaiton
for entering a coffee house and joining in a discussion there. The INARM
participants have made no long term commitment to continue to participate.
While some of the participants in INARM are the same folks who are
involved in official actuarial groups, they participate in INARM
discussions as individuals. INARM has a BLOG and a listserv to
facilitate communications. INARM participants have helped to initiate
and find volunteers for the Global ERM Webinar. Through these
communications devices, INARM participants may be found who will
volunteer to provide help for activities of any of the official
actuarial groups. As with the Webinar, activities initiated by INARM
will always require formal commitment from the official actuarial groups since
INARM has no budget and no ability to enter into any sort of contract.
So if INARM participants come up with an idea, they will need to take it
back to their official actuarial organizations for implementation.
INARM came into being as a result of efforts from the Joint Risk
Management section to strengthen ties with actuaries who are developing
ERM programs and skills in other parts of the world. The Joint Risk
management section international committee calls grew until there were
as many non – SOA/CAS members as there were members. The non-North
American participants wanted the group to have a name that was
independent of the JRMS. One of the participants created the logo in a
burst of enthusiasm.
Currently there are almost 300 people, half non-members, who participate
in the listserv. In addition, there is an INARM group on LinkedIn, a
business networking web service with about 170 members, half of whom are
not members of the listserv. That group has folks from 29 countries and
is mostly non-North American. If you look on LinkedIn, there are many,
many groups there that exist in the same way as INARM.
But, to stop running this down, INARM does provide a valuable new venue
for international communication between actuaries. In many areas of
actuarial practice, regulations and taxes and traditions are so
different that there are somewhat limited points of full collaboration.
That is generally not true in ERM. ERM is a new field, even with the
Solvency 2 regime in Europe, there will still be many, many ways that
ERM issues for actuaries will be similar if not completely the same
throughout the globe. Practice is still very much in the evolving
stage. International collaboration is completely appropriate for ERM.
And who knows, if we learn to talk about ERM as one global profession,
perhaps that will strengthen our hand in our competition with others for
A number of INARM participants are interested in creating a link between INARM and the IAA Enterprise & Financial Risks Committee. That seems to be a natural relationship. However, INARM because of its nature as described above, would not ever become a body that advocates for any particular initiatives or as a body enters into any policy debates on issues relating to education, credentialing,
membership standards, regulatory issues or any of the things that are debated
within the IAA. That does not mean that INARM participants will not form strong
opinions on the important issues of the day. And INARM will provide a forum for
its participants to express their views to the other participants as individuals. However, INARM participants have come together to share thoughts on Risk Management issues, so it is likely that there is limited interest in profession politics.
What INARM would provide to the E&FRC would be a direct conduit to actuaries around the world who are active in the risk management field. The
E&FRC could choose to use that access to get broader feedback on topics under consideration by the committee and to solicit volunteers for activities directly. In addition,
1) INARM provides a platform for ERM discussion and knowledge exchange thus driving the process to form opinions on subjects under consideration by official task forces as well. This feeds back into the task forces either directly via task force members who are INARM participants or via information provided to them by INARM participants.
2) INARM allows participants to gain a broader view of emerging global best practices via its cross-border approach.
3) Participants of INARM through their contributions and knowledge sharing form a pool of potential valuable task force members.
4) Initiatives and activities undertaken by INARM participants may sponsor international initiatives by the formal actuarial organizations on ERM issues.
It would be easy for anyone to get a sense of INARM directly via the links below.
The SOA has provided an email listserv facility. This has been used by the over 280 listserv members to share articles, questions, answers, opinions and program information. Open to all. Sign up at link below. http://www.soa.org/news-and-publications/listservs/list-public-listservs.aspx
As an alternative to the Listserv, an INARM Blog has been created. Discussions of Sub Prime, the 2008 ERM Symposium, Fair Value, Limitations to Modeling and Mortgage Lending in Asia have been copied there from the Listserv emails in March & April 2008. You can add your comments there without joining anything. http://riskviews.wordpress.com/
>>INARM Emerging Risks
In January 2008, INARM helped to create the Global ERM Best Practices for Insurers and Reinsurers webinar. This program ran for 16 hours and drew an audience of 1600 people from 47 countries. One of the programs was on the topic of Emerging Risks. Materials from that program plus new sources on the topic have been made available in an open platform that allows users to add more materials as they see fit. This is accomplished with a Google Group called INARM Emerging Risks. Anyone can make comments. To add significant postings, you need to join the group. Instructions are there on the website. http://groups.google.com/group/inarm-emerging-risks/web
>>INARM LinkedIn Group
While the listserv is not anonymous, it does not provide for members to easily learn each other’s identities. LinkedIn is a professional networking website that allows the formation of special groups. We have formed an INARM group. As of this writing, the INARM group on LinkedIn has over 170 members from more than 30 countries. To use this facility, you must join LinkedIn. There is a level of service on LinkedIn that is free and that you may find to be sufficient to make connections with other INARM members if you are interested in that. To join the INARM group http://www.linkedin.com/e/gis/83735/3270834C5E91
>>Other INARM citings on the Web
For more information about INARM, look at http://www.actuaries.asn.au/NR/rdonlyres/1C5D0157-1B4E-4059-B75E-32F751723D99/2700/INARMKit.pdf http://www.soa.org/professional-interests/joint-risk-management/jrm-inarm.aspx
D. Ingram (with help from several other INARM participants)
June 2008 firstname.lastname@example.org
June 3, there are 167 participants in the INARM group on LinkedIn (http://www.linkedin.com/e/gis/83735/3270834C5E91) from 29 countries. LinkedIn provides a free level of service that mainly lets you access information about others that they have made public. Through joining the LinkedIn INARM group, you can make connections with the 167 members of that group.
Hong Kong 1
S. Korea 1
South Africa 1
Please pass this along to members of your actuarial profession (not just representatives, all members interested in risk management) to sign up.
NARM will commit to find content to make this a worthwhile venture for the participants.
The International Network of Actuarial Risk Managers (INARM) will be organized around the following principles:
Note first that this network will have a primary focus on members of the actuarial organizations around the world. This effort is not meant to conflict or supersede IAA efforts but is meant to be a vehicle to allow the broad actuarial communities to connect in the risk management area and developments worldwide.
A. The main purpose of the Network would be to advance the quality and effectiveness of actuarial practice in the area of ERM through strength of numbers that will allow us to develop the critical mass to compete with other (non-actuarial) organizations that are or will become global. Critical mass will enable the efficiency and effectiveness of other aspects, including cooperation on things like research, publications etc.
B. The purpose will be supported by sharing of learnings and experiences, by joint research and publication and of mutual support, eg in developing and conducting joint seminars and sharing of speakers from the countries involved.
C. Mutual support includes recognizing that there are more similarities than differences in the ERM problems that we face around the world. In addition, it means that we recognize each other’s contributions. Finally, it means that we accept each other’s level of current practice without prejudice, looking to learn from best practices emerging.
D. We commit to making this Network a positive force in the development of actuarial ERM practices by agreeing to regular communication and cooperation with the other members of the affiliation. This will include reporting on international ERM practices at actuarial meetings of the associations involved.
E. As professional standards of practice develop for Risk Management work by actuaries, we will share our findings with the hopes that some commonality will develop globally, to further accelerate the development and implementation of sound ERM practices around the world.