The Actuarial Standards Board (ASB) of the American Academy of Actuaries approved an exposure draft of a new ASOP on enterprise risk management to replace ASOP Nos. 46 and 47, Risk Evaluation in Enterprise Risk Management and Risk Treatment in Enterprise Risk Management, respectively. The proposed ASOP, titled Enterprise Risk Management, provides guidance to actuaries when performing actuarial services with respect to developing, maintaining, or reviewing all or part of an enterprise risk management (ERM) framework.
ASOP Nos. 46 and 47 were the first ASOPs applying specifically to actuaries performing actuarial services for the purposes of ERM. Both ASOPs were adopted by the ASB in 2012. In the years since ASOP Nos. 46 and 47 were adopted, actuarial practice in the field of ERM has evolved considerably, with many actuaries now working as risk practitioners and a number working in senior risk roles, including chief risk officer. Moreover, ERM nomenclature has also evolved. Additionally, ASOP No. 55, Capital Adequacy Assessment, covering topics with strong connections to ERM, was adopted by the ASB in 2019. Therefore, the ASB decided to revise ASOP Nos. 46 and 47 to reflect the developments of the past decade, to better reflect today’s ERM practices and terminology, and to align with ASOP No. 55. The comment deadline is Sept. 15, 2023. Information on how to submit comments can be found in the exposure draft.