How to Strategically Combine ASA and CERA Designations for Risk Management Careers

If you’re looking to accelerate your career in risk management, combining the Associate of the Society of Actuaries (ASA) and Chartered Enterprise Risk Analyst (CERA) designations is a strategic move that can significantly boost your professional growth. Both credentials are highly respected in the industry, and when paired, they offer a powerful combination of technical actuarial skills and enterprise risk management expertise. The ASA designation is foundational, focusing on core actuarial skills such as probability, financial mathematics, and economics, while the CERA credential specializes in risk management, equipping you with the ability to identify, measure, and manage risk at the enterprise level.

Let’s explore how these designations complement each other and how you can strategically combine them to maximize your career flexibility and marketability.

Understanding the ASA Designation #

The ASA designation is a critical step in the actuarial career path, typically pursued after completing preliminary exams like Probability (Exam P) and Financial Mathematics (Exam FM). It signifies a strong foundation in actuarial science, preparing you for roles in life insurance, health insurance, and pensions. The ASA is a versatile credential that can lead to various actuarial positions, but it may not fully prepare you for the broader risk management roles that are increasingly in demand.

The Value of CERA in Risk Management #

Introduced by the Society of Actuaries (SOA) in 2007, the CERA credential is designed for actuaries who want to specialize in enterprise risk management (ERM). It is recognized globally and governed by the CERA Global Association, ensuring international standards and transferability. The CERA syllabus covers ERM frameworks, risk modeling, capital assessment, and more, aligning with the latest industry standards. By earning the CERA designation, you demonstrate expertise in risk management, making you highly sought after in industries like insurance, finance, consulting, and beyond.

Practical Benefits of Combining ASA and CERA #

Combining ASA and CERA designations offers several practical benefits:

  1. Career Flexibility: With both ASA and CERA, you can transition between traditional actuarial roles and broader risk management positions. For instance, you might start as an actuary in a life insurance company and later move into a role as a risk manager or chief risk officer.

  2. Enhanced Marketability: Employers increasingly look for professionals who can not only crunch numbers but also understand and communicate risk at the enterprise level. A 2018 survey highlighted the growing demand for ERM skills, particularly in financial services and consulting.

  3. Leadership Opportunities: The combination of ASA and CERA signals to employers that you have both deep technical expertise and a strategic, big-picture understanding of risk. This can position you well for leadership roles and open doors internationally.

Strategic Planning for ASA and CERA #

To strategically combine these designations, consider the following steps:

  1. Year 1-2: Focus on ASA Requirements
    Begin by completing the ASA preliminary exams and foundational modules. This will build your actuarial toolkit and provide a solid foundation for further specialization.

  2. Year 2-3: Integrate CERA Requirements
    Once you have a strong ASA foundation, start integrating CERA requirements. Focus on the dedicated ERM exam and related coursework. This will enhance your understanding of risk beyond standard actuarial work.

  3. Year 3-5: Finalize Your CERA and Explore Additional Opportunities
    Complete the CERA credential while exploring additional opportunities in risk management. Consider internships or job roles that expose you to both casualty actuarial work and enterprise risk management.

  4. Networking
    Engage with both the SOA and CAS communities. These organizations often have distinct but overlapping professional groups, and networking within them can expand your opportunities.

Leveraging VEE Credits and Professionalism Courses #

To streamline your credentialing process, make sure to leverage Validation by Educational Experience (VEE) credits wisely. These credits can satisfy requirements across multiple designations, reducing redundancy. Additionally, focus on professionalism courses early, as both ASA and CERA require these. Completing these as part of your CERA track can help you avoid duplicating effort and accelerate your path to becoming a certified actuary.

Real-Life Examples of Success #

Let’s look at a couple of real-life examples of how combining ASA and CERA has led to successful careers:

  • Brett Riley, an actuary in Australia, completed his fellowship exams years ago but later pursued the CERA credential. He went on to hold the position of Chief Risk Officer for Arch LMI, a startup mortgage insurer. This transition demonstrates how the CERA can open doors to leadership roles in risk management.

  • Arthur Els credited the CERA study materials and examination for equipping him with essential ERM skills. He applied these skills when appointed to a Chief Risk Officer’s task team in a major construction firm in South Africa. This example highlights the versatility of the CERA credential in non-traditional fields.

The Future of Risk Management Careers #

As industries evolve, the demand for professionals with expertise in both actuarial science and enterprise risk management is growing. The CERA credential, in particular, offers a unique value proposition by providing a comprehensive education in current ERM topics. Under the latest CERA Global Association syllabus, there are 42 learning objectives covering the entire risk spectrum of an organization, from risk identification and assessment to embedding ERM in decision-making.

In conclusion, strategically combining the ASA and CERA designations is a powerful career strategy for those interested in risk management. It not only enhances your technical skills but also positions you for leadership roles and offers international recognition. By understanding how these credentials complement each other and planning your career path effectively, you can maximize your marketability and career flexibility in the rapidly evolving field of actuarial science.