Operational resilience: Actuarial reserving function

In this paper, we cover the operational risks affecting actuarial reserving teams, how teams can assess operational tolerance, and how they can invest in improving the risk management controls already in place. We provide a framework to maximise resilience to risk events and changing environments. Our survey of Milliman clients highlights the operational risks that actuarial reserving teams are exposed to across the globe, which in turn could affect the delivery of services and commitment towards customers. The paper discusses:

• An overview of the regulatory expectations
• Background on operational resilience
• Achieving best practice
• Actual market practice on approaches