Mr S. G Afzal BiyaBani our Resident Editor at Saudi Arabia and MENA interacted with Ms.Saroj a Gunatilleke, Managing Director, S G Actuarial Consultancy (Pvt) Ltd. at Hilton Hotel, Sri Lanka. Ms Saroja is Fellow of Institute of Actuaries UK and offering Actuarial Consultancy and Risk Management Services in around 17 countries. Mr Afzal had discussion on range of issues. Here are the excerpts of the Interview.
S. G Afzal BiyaBani : What inspired you to specialize in actuarial science and risk management? How did you develop your expertise in these fields?
Saroja Gunatilleke : I was interested in mathematics from a very young age but wasn’t sure where that would lead. Actuarial science was something I hadn’t heard about until I commenced my university education in the UK. One of my friends in the UK spoke about actuarial science & risk management and the positives about following an actuarial career. This encouraged me to find out more about this career path.
I did my postgraduate studies in actuarial science in the UK. For my three degrees, B.Sc. (Hons) Mathematics, Graduate Diploma in Actuarial Science and M.Sc. Actuarial Science, I obtained a first class / distinction pass.
I then went on to complete the actuarial professional exams under the Institute and Faculty of Actuaries, UK at the age of 26. And when I qualified as a Fellow Actuary, I was the only Sri Lankan in the insurance industry with that qualification.
Of course, the learning doesn’t stop there. I keep up to date with the changes in the industry and global trends by attending seminars and reading.
S. G Afzal BiyaBani : You mention that your work experience is unique, why is that?
Saroja Gunatilleke : My work experience hasn’t been all typical actuarial roles. I have also worked as the consultant actuary at the insurance regulatory body. In addition, I have held a non-actuarial insurance role at the Sri Lankan operation of LIC India.
The fact that I have had the opportunity to see things both from a company and regulatory perspective as well as the overall operation of an insurance company helps me with my current role.
S. G Afzal BiyaBani : What made you commence offering actuarial and risk management consultancy and training services?
Saroja Gunatilleke : I identified that there is a gap between the actuaries and other professions and felt that an insurance company’s operations would run smoother if other professions understood what actuaries do. Then actuaries should get the required information from other departments and other professions can ask actuaries the right questions.
Even the consulting services I offer are support services to help with the overall objective to bridge the gap between the actuaries and other professions. I attempt to explain technical actuarial and risk management concepts in layman’s terms.
This integration between professions, I feel is particularly necessary with certain regulations that we have faced or may face in the future. For example, Risk Based Capital (RBC) and IFRS17 in the insurance sector.
S. G Afzal BiyaBani : As an actuarial and risk management trainer, you have received participants from Sri Lanka and 17 countries including India. Could you share some details about your training programmes and why it is relevant for participants from other countries as well?
Saroja Gunatilleke : I have designed these training programmes to teach actuarial concepts such as reserving, pricing, profitability analysis, risk management, investment to other professions to help with the overall objective mentioned above. Finance, underwriting, claims, IT, marketing etc. staff as well as management will see sample calculations of cash flow projections as well as see how actuarial science and risk management connects to various parts of a company. All contents are delivered in a very easy to understand manner and no prior knowledge is expected.
Even though for example the regulations may differ from country to country the overall concepts are largely the same. In reserving we can learn about the process of projecting cash flows although the assumptions we use can differ from country to country. Another example is the training programmes on RBC. Although, the risks and the applicable charges under the framework can change from country to country the overall concept of RBC is similar.
S. G Afzal BiyaBani : What are the main challenges faced by organizations when it comes to implementing risk management practices? How do you assist them in over coming these challenges?
Saroja Gunatilleke : I believe organizations know what risks they face but most don’t put it in to a structured format to assist with the process of risk management. This is what I help companies with.
I think the person working in a particular area knows the risks they face on a day to day basis. I work with the internal staff of the organization to come up with a suitable and practical solution.
S. G Afzal BiyaBani : How is the scenario of risk management awareness and culture across various financial bodies and corporate sector in Sri Lanka?
Saroja Gunatilleke : In Sri Lanka I feel most companies don’t conduct adequate risk management practices. Convincing them they should, is in itself a challenge! Financial sector is a different story with regulatory bodies also expecting it, most companies do conduct risk managemeAnt.
I believe all companies should manage their risks. Actuaries should work in other sectors not only insurance promoting a risk management culture. However, Sri Lanka does not have adequate actuarial resources even for the insurance sector and hence this is not possible.
S. G Afzal BiyaBani : What is the demand of actuarial and risk management courses in Sri Lanka?
Saroja Gunatilleke : Even now the awareness of actuarial science is quite low in Sri Lanka. Students following mathematics and statistics also are not familiar with the actuarial career path. We do not have actuarial science being taught at a B.Sc. level in Sri Lanka. The mathematical ability of students here is quite high and I believe we have potential to produce many actuaries. It is the awareness, that is lacking.
I have delivered many career talks at universities encouraging students to try this career path. And some students do attend my training programmes to see if they like to follow an actuarial career path. I hope more students will commence the journey of actuarial learning and am confident if they do they can succeed.
