Actuarial Analysis

The analysis of an investment's risk done by an actuary.

A highly educated actuary will use statistics and historical data in an attempt to measure the risk of a particular investment. Actuaries evaluate the likelihood of events and quantify the contingent outcomes in order to minimize losses, both emotional and financial, associated with uncertain undesirable events. Since many events, such as death, cannot be totally avoided, it is helpful to take measures to minimize their financial impact when they occur. These risks can affect both sides of the balance sheet, and require asset management, liability management, and valuation skills. Analytical skills, business knowledge and understanding of human behavior and the vagaries of information systems are required to design and manage programs that control risk.

Accumulative Swing Index                    Andrew's Pitch fork