Pox Americana Wrote: >I think part of the problem is that historically, actuaries managed very mild risks >Actuaries are, through no fault of > their own, ill-equipped to manage the kinds of > risks that exist in the financial markets > (Extremistan). Have you considered re-insurance risks?
JoeyDVivre Wrote: ------------------------------------------------------- > So put up $10K… > > You guys are such whiny wu$$ies. Oh they a very > diifcult exams, but I am afraid to risk any money. > Do you think that whiners ever succeed in > finance? Be men! Take risk! Can we put up an equal percentage of our net worth instead?
Maratikus, That’s a good point. But considering that the overwhelming majority of actuaries are not P&C actuaries (i think it’s 18,000 vs around 4,000, but could be wrong, and an even smaller % of P&C actuaries deal with reinsurance), I think my statement was reasonable. Most actuaries are accustomed to well-behaved risks that are easy to reserve for. Then again, a lot of PhDs have blown it big time when it comes to risk, so I guess that levels the playing field a little. Still, if I were doing due diligence on a HF, I would prefer to see a PhD than an FSA handling risk management.