2009 Annual Meeting ● Assemblée annuelle 2009 Halifax, Nova Scotia ● Halifax (Nouvelle- Écosse )

1. Canadian Institute of Actuaries L’Institut canadien des actuaires 2009 Annual Meeting ●Assembléeannuelle 2009 Halifax, Nova Scotia ● Halifax (Nouvelle-Écosse)

2. Stephen P. D’Arcy Professor Emeritus of Finance, University of Illinois Member of the Global ERM Designation Treaty Task Force Global Enterprise Risk Management Designation Recognition Treaty 2009 Annual Meeting Assembléeannuelle 2009 PD-18 ERM Going Global

3. Overview Purpose of Treaty Background ERM Specialists Moving into ERM Actuarial Global Designation Key Elements of Treaty Global Enterprise Risk Management Designation Recognition Treaty - version 6.2 (June 2009) Next Steps 2009 Annual Meeting Assembléeannuelle 2009

4. Purpose of Treaty Develop an agreement among actuarial organizations on a single, globally recognized ERM designation Enhance the role of actuaries in ERM Facilitate international ERM applications Develop a consistent standard for the ERM designation Allow members of multiple organizations to gain this recognition by qualifying with one organization 2009 Annual Meeting Assembléeannuelle 2009

5. Background of ERM ERM developed in the 1990s as a response to financial risk management failures Chief Risk Officers Regulation Basel Sarbanes-Oxley Role of risk management expanded to all risks 2009 Annual Meeting Assembléeannuelle 2009

6. Specialists Moving Into ERM PRMIA – Professional Risk Manager’s International Association GARP – Global Association for Risk Professionals Accountants COSO - Committee of Sponsoring Organizations of the Treadway Commission Financial Engineers Actuaries 2009 Annual Meeting Assembléeannuelle 2009

7. Actuarial Global Designation Statement of Intent Dublin IAA meeting – October 2007 15 Actuarial Organizations Heavily Involved, including CIA Treaty Task Force, chaired by Fred Rowley (Australia) Syllabus Task Force, chaired by Harry Panjer Approximately a dozen organizations are now prepared to sign this treaty 2009 Annual Meeting Assembléeannuelle 2009

8. Key Elements of Treaty - 1 Terms Founding Party – initial signatory Acceding Party – subsequent signatory Award Signatory – awards designation Board First 3 years - representatives of all founding and acceding parties After 3 years – representatives of award signatories Review Panel – evaluates designation process of potential award signatories 2009 Annual Meeting Assembléeannuelle 2009

9. Key Elements of Treaty - 2 Each signatory agrees to meet educational standards for awarding designation to its members If a member has earned this designation from another signatory, that will be accepted by other signatories Designation will be termed CERA 2009 Annual Meeting Assembléeannuelle 2009

10. Key Elements of Treaty - 3 Awarding designation Must be to IAA Fully Qualified Actuary Subject to code of ethics or professional conduct Meets educational standards of approved syllabus Examined by actuarial organization Qualified by an accredited education provider 2009 Annual Meeting Assembléeannuelle 2009

11. Key Elements of Treaty - 4 Weighted Voting If not on the Board, 1 vote If on the Board (once board exceeds 8) 2 votes plus 1 vote for 200-599 Fully Qualified Actuaries 1 vote for each 400 FQA over 200 up to 9000 1 vote for each 800 FQA over 9000 Weight limited to 12.5% of total votes Once 10 or more award signatories each have awarded 50 or more designations, policy will be reviewed to shift toward designees instead of FQA 2009 Annual Meeting Assembléeannuelle 2009

12. Next Steps Signing of treaty by founding parties Expected to be by 30 June 2009 Form Implementation Steering Group Fred Rowley will chair CIA, CAS, SOA + 10 other organizations Form Review Panel For individual organizations Determine how to award this designation Apply for award designation status Begin to award designation 2009 Annual Meeting Assembléeannuelle 2009