News July 2021 Joint Forum on Actuarial Regulation (JFAR) announces latest risk hotspots

Joint Forum on Actuarial Regulation (JFAR) announces latest risk hotspots

27 July 2021
The Joint Forum on Actuarial Regulation (JFAR), which is comprised of key UK actuarial regulators, has today published its annual Risk Perspective to highlight JFAR’s collective view of risks to high quality actuarial work. This year’s risk perspective has identified climate-related risk (including biodiversity) and systemic risk (including Covid-19) as key risk hotspots, while long Covid, mental health and the triple lock are also included.
JFAR is comprised of representatives from the Financial Conduct Authority (FCA), the Financial Reporting Council (FRC), the Institute and Faculty of Actuaries (IFoA), the Prudential Regulation Authority (PRA) and The Pensions Regulator (TPR). The full list of risks identified in this year’s JFAR risk perspective are:
  • climate-related risk (including biodiversity)
  • systemic risk (including the Covid-19 pandemic)
  • ageing population and affordability
  • unfair outcomes for individuals
  • geopolitical, legislative, and regulatory risk
  • technological change and competence in new areas (including machine learning, big data, artificial intelligence)
  • impact of undue commercial pressure
  • effective communication
Mark Babington, FRC Executive Director of Regulatory Standards said:

Actuaries play a key role in assessing financial risks and providing expert advice on managing those risks. This year’s risk perspective has identified a range of key hotspots, from climate-related risk through to some of the longer-term impacts of the Covid-19 pandemic that actuaries should consider in the course of their work. Actuaries, employers and users of actuarial work are encouraged to closely consider these risks in order to promote high quality actuarial work and mitigate risks to the public interest.”

The full report is available here.

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