GRA · Actuarial and Quantitative Risk
Spatial financeWhere capital meets hazard, exposure and transition
STEM foundation of Actuarial and Quantitative Risk
The science, technology, engineering and mathematics Actuarial and Quantitative Risk rests on. Each method has a canonical page in the STEM Commons, hosted by the Global Centre for Risk and Innovation (GCRI), and a page here on how it is applied in this field.
Six pages under STEM foundation of Actuarial and Quantitative Risk.
- 01MethodActuarial mathematics at Actuarial and Quantitative Risk
- 02MethodExtreme value theory and tail risk for actuarial and quantitative risk
- 03MethodProbability and statistics for actuarial and quantitative risk
- 04MethodUncertainty quantification and model validation for actuarial and quantitative risk
- 05MethodFinancial and risk engineering for actuarial and quantitative risk
- 06MethodHigh-performance, cloud and edge computing for actuarial and quantitative risk
The methods behind the field.
- 01Actuarial mathematicsReserving with development triangles · Premium build-up · Annuity valuationSteward · Actuarial and Quantitative RiskApplied here
- 02Extreme value theory and tail riskExcess layer pricing · Tail capital measures · Non-stationary hazard extremesSteward · Reinsurance and CatastropheApplied here
- 03Probability and statisticsGeneralised linear models in pricing · Bayesian credibility · Goodness-of-fit testingSteward · Systems Science and ModellingApplied here
- 04Uncertainty quantification and model validationReserve ranges · Parameter and model uncertainty · Sensitivity rankingSteward · Systems Science and ModellingApplied here
- 05Financial and risk engineeringValuing embedded guarantees · Economic scenario generators · Risk transfer structuresSteward · Actuarial and Quantitative RiskApplied here
- 06High-performance, cloud and edge computingMonte Carlo simulation · Version control and reproducibility · End-user computing controlsSteward · Data and ComputeApplied here
The STEM methods Actuarial and Quantitative Risk applies, and why.
- Actuarial mathematicsRole in Actuarial and Quantitative RiskActuarial mathematics turns experience, exposure and assumptions into premiums, reserves and capital.
- Extreme value theory for actuariesRole in Actuarial and Quantitative RiskExtreme value theory models the tails of loss and hazard distributions.
- Statistics for actuarial modellingRole in Actuarial and Quantitative RiskProbability and statistics provide the language of quantitative risk: distributions, estimation, dependence, testing and uncertainty.
- Uncertainty in actuarial estimatesRole in Actuarial and Quantitative RiskUncertainty quantification identifies and propagates uncertainty in data, parameters, model structure and assumptions.
- Financial engineering for insurersRole in Actuarial and Quantitative RiskFinancial engineering values and structures instruments whose payoffs depend on risk.
- Computing for quantitative riskRole in Actuarial and Quantitative RiskComputing makes quantitative risk work possible and introduces its own risks.
Each Actuarial and Quantitative Risk method is described once in the STEM Commons at GCRI and applied here to quantitative risk methods.
Grounding makes claims checkable.
When a finding names the methods it depends on, a reader can see its assumptions and limits, and an expert in that method can challenge it.
Where this page’s references lead.
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
- Solvency II Directive 2009/138/EC as amended by the 2025 review (apply from 30 January 2027)
- IAIS Insurance Core Principles and ComFrame, including the Insurance Capital Standard (adopted December 2024)
- US interagency revised guidance on model risk management, SR 26-2 (April 2026), superseding SR 11-7
Pages in STEM foundation of Actuarial and Quantitative Risk.
Actuarial mathematics at Actuarial and Quantitative Risk
MethodExtreme value theory and tail risk for actuarial and quantitative risk
MethodProbability and statistics for actuarial and quantitative risk
MethodUncertainty quantification and model validation for actuarial and quantitative risk
MethodFinancial and risk engineering for actuarial and quantitative risk
MethodHigh-performance, cloud and edge computing for actuarial and quantitative risk
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