The Actuarial Standards Board of the American Academy of Actuaries recently approved a second exposure draft on a proposed new ASOP titled Enterprise Risk Management. The ASOP provides guidance to actuaries when performing actuarial services with respect to developing, maintaining, or reviewing all or part of an enterprise risk management framework.
Notable changes from the exposure draft, which received 15 comment letters, include adding guidance to limit the scope of the standard; including a definition for “risk classification”; and streamlining guidance on the risk appetite framework. The comment deadline is Nov. 1, 2024. Information on how to submit comments can be found in the draft.
