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Actuarial Implications of Data-Driven ESG Risk Assessment
Subject area: Science,Engineering and Technology · Area of research: Data Science & Machine Learning
Abstract
This paper discusses the actuarial consequences of big data ESG risk rating and details how big data has revolutionized the profession. With more firms recognizing the importance of ESG factors, actuaries are well-suited to measure and mitigate these multifaceted issues. Integrating data and analytic techniques improves the reliability of assessed risks, helping actuaries become key advisors for future decisions. These transformations require changes in actuarial education that would prepare learners for such tasks based on data analysis and ESG metrics. Additionally, the recruitment of actuaries in consulting positions should also increase, given that firms are likely to seek advice on how to integrate ESG factors into their risk management models. In conclusion, the adoption of scientific approaches to ESG risk assessment will not only add more value to the profession while expanding its focus on actuarial utility but also promote more sustainable business practices across the corporate sector, thus proving the importance of actuarial professionals in interpreting the modern risk environment (Vasenin, 2022).
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How to cite this paper
@article{1707215,
author = {Munashe Naphtali Mupa, Sylvester Tafirenyika, Melody Rudaviro Nyajeka, Tamuka Mavenge Moyo, Eliel Kundai Zhuwankinyu},
title = {Actuarial Implications of Data-Driven ESG Risk Assessment},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {8},
number = {8},
pages = {505-516},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1707215.pdf},
abstract = {This paper discusses the actuarial consequences of big data ESG risk rating and details how big data has revolutionized the profession. With more firms recognizing the importance of ESG factors, actuaries are well-suited to measure and mitigate these multifaceted issues. Integrating data and analytic techniques improves the reliability of assessed risks, helping actuaries become key advisors for future decisions. These transformations require changes in actuarial education that would prepare learners for such tasks based on data analysis and ESG metrics. Additionally, the recruitment of actuaries in consulting positions should also increase, given that firms are likely to seek advice on how to integrate ESG factors into their risk management models. In conclusion, the adoption of scientific approaches to ESG risk assessment will not only add more value to the profession while expanding its focus on actuarial utility but also promote more sustainable business practices across the corporate sector, thus proving the importance of actuarial professionals in interpreting the modern risk environment (Vasenin, 2022).},
month = {February},
}