08 December 2022
The Joint Forum on Actuarial Regulation has today (Thursday 8 December) released the annual JFAR Risk Perspective, setting out its collective view on current risks to high-quality actuarial work. The JFAR Risk Perspective 2022 is intended to raise awareness of the risks to, and the importance of, high-quality actuarial work in mitigating the risk to the public interest.
(JFAR) comprises the Institute and Faculty of Actuaries, the Financial Reporting Council, the Financial Conduct Authority, The Pensions Regulator and the Prudential Regulation Authority. Initially formed in 2013, the JFAR recognises there’s a lot of commonality of interest among the five regulators in ensuring high-quality actuarial work.
The JFAR has identified five ‘hotspots’ where there was a perceived increase in risk to the public interest, and where actuarial work is central. The 2022 report’s theme is the interconnectedness of risk and says it’s important for actuaries to appreciate the main connections between these issues.
The five interconnected hotspots are:
Neil Buckley, Lay Chair of the IFoA Regulatory Board, said: “The JFAR Risk Perspective report is essential reading for actuaries and any companies employing actuaries to assess risk. Maintaining public trust in actuarial work is critical and bringing regulators together to collaborate on this report demonstrates the commitment of the JFAR members to address the most pressing societal issues affecting our profession. This year the focus on the interconnectedness of risk highlights that actuaries need to understand both the risk around the five ‘hotspots’ and the complex inter-relationships between these issues and their potential impacts.”