Actuaries suggest ways to avoid global financial crisis

The International Actuarial Association has proposed systemic changes to avoid a repeat of the global financial crisis. Some of the proposals are:

• A counter-cyclical capital regime where more capital is put away in boom times as a buffer for the bad
• Creation of a national risk officer
• Financial services companies to have an independent chief risk officer who reports directly to the Board
• Higher capital requirements for market participants with remuneration incentives focused excessively on short-term results

The President of the Institute of Actuaries of Australia will be in KL next week. Anyone who is interested in discussing the above further with the President can contact this blogger.

Source: Lateline Business, SuperReview, IAA