The requirements for actuarial input and the role of the actuary are clearly defined in the investment governance framework.
Governance refers to the process of decision-making, control and monitoring of the processes carried out by an organization. Its aim is to ensure risks are known and managed effectively as well as improving efficiency of processes.
Actuarial input is increasing in magnitude and importance in many investment areas. The actuary’s involvement in the governance structure and investment processes of the social security institution should therefore be sought.
This guideline considers, at a general level, the different elements of investment governance where actuarial input is likely to be required. This guideline should be read in conjunction with the ISSA Guidelines on Investment of Social Security Funds, Guidelines 1 to 5 inclusive, which describes in more detail the general governance issues set out below.