The Actuarial Advantage...
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"Actuaries have a unique combination of skills: The business skills of an MBA, the financial analytical skills of a CFA and the mathematical skill of a statistician—all in one!" |
Actuaries' Skills vs. MBAs' Skills:
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Actuaries have the advantage of actuarial mathematical techniques to forecast and understand future risks, whereas MBAs may rely on accountants, or even actuaries, to provide them with statements to make management decisions. Some actuaries even have MBAs! |
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Actuaries can conduct detailed analyses of complex risks and their impacts to the enterprise while MBAs focus on business operations. |
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Actuaries have extensive training in the insurance and retirement benefits industries, and can provide valuable industry context for general business strategies. |
Actuaries' Skills vs. CFAs' Skills:
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Actuaries understand the obligations and liabilities on the balance sheet, and can help link the asset strategies to the liability profile to help understand and manage risks. |
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Actuarial training focuses on risk, whereas the focus of the CFA credential is solely on investments. |
Actuaries' Skills vs. Financial Professionals' Skills:
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Actuaries understand how to forecast for long- and short-term risks whereas the financial professional focuses on short-term risks. |
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Actuaries understand the impact of risk on economic financial results as well as financial reports, regulators and investors. |
Actuaries' Skills vs. Statisticians' Skills:
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Actuaries use statistics as a measurement tool to evaluate. |
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Statisticians measure but do not evaluate. |