The Actuarial Association of Europe (AAE) announces the publication of an update of a discussion
paper titled ”Actuaries and Operational Risk Management – updated 2025 edition”.

This paper explores the skills and techniques actuaries can bring to operational risk management.
It argues that actuaries are well placed to assist in this area of risk management. We set out
desirable skills for such individuals as well as areas that actuaries might get more involved with in
the future. We explore how operational risk fits into insurer own risk and solvency assessments
and pension fund own risk assessments.

We also explore ways of capturing the wisdom of experts, quantitative techniques commonly
applied to operational risk measurement and management, stress testing disciplines, how best to
cope with limited data and how best to set operational risk appetite and limits and we comment
on operational resilience and risk culture.

This paper is an update of the earlier issued AAE Discussion Paper “Actuaries and Operational Risk
Management”, published in January 2021.