In today’s world, roles of an Actuary plays a vital part in various businesses and organizations. They are trained professionals who estimate and predict future risks and help develop promising strategies for risk management and increasing profitability.
As an actuary, you will be having many responsibilities but out of all of them below listed are the top 5 main ones that one has to handle:
Statistical Data Analysis
Working on statistical analysis is one of the major roles of an Actuary. This involves collecting and analyzing the data. The data involves the information of a particular employee that is required by the employer or company. These data are compiled into an algorithm to analyze their influence on finance.
Expert Witness Testimony During Lawsuits
Actuaries are usually presented as expert witnesses during a lawsuit that deals with insurance or financial risks. Especially an actuary who is working in an insurance company. They are requested to provide testimony during the government cases when new laws for insurance companies are attempted to be made by the federal or state legislature.
Reviewing Company Policies for Businesses
When it comes to an organization, it has various contracts and policies that are involved to run it. An actuary plays a major role in reviewing company policies and contracts according to the business setup. This involves documentation like insurance policies, plans of employees, annuity plans and various other contracts. By reviewing this important documentation they can analyze and study the risk factor so that they can recommend the company to make strategies that will decrease the risk and increase profitability.
Developing Risk Analysis Models
Actuaries play a key role in designing the statistical models required for the company. This involves data from the present, past and prediction of the future. All this data is something that helps them study the various financial risks and situations. They are usually seen working with statisticians, mathematicians and accounts to generate the mentioned required data.
Interacting with Businesses
After an actuary has collected the necessary data and analyzed it, they have to convey their findings to the concerned authorities. The communication will involve risk analysis and risk management steps to be taken to improve the situation.
With the growing requirement of companies to find professionals to handle the above-mentioned responsibilities, it is a great profession to try out. This profession will also let you enjoy your work and help you get a great package. When we think from the growth point of view of a business & company the roles of an actuary plays a vital role & can add value to any organization.