An actuary intervenes with public faith in the processing of a procedural order.
An actuary is a subject who, when procedural orders are processed, intervenes with public faith . The concept, according to the dictionary of the Royal Spanish Academy ( RAE ), is used in the field of law .
Before moving forward, it is important to establish the etymological origin of the term. In this case, we can say that it is a word that derives from the Latin actuarium , which can be translated as "advisor" or "counselor" . It is the result of the sum of two clearly differentiated parts: actum and the suffix -ary , which can be used to indicate “relative to” .
The work of the actuary
To understand the definition of actuary, in short, you must know the meaning of several notions. A procedural order is a judicial resolution issued by a court with reference to a request from one of the parties. These orders are responsible for resolving incidents or issues prior or secondary to the sentence.
Public faith , on the other hand, is the authority granted to certain individuals to declare that certain documents or procedures are authentic. In this way, the public faith given by an official confirms that what is expressed in a document must be taken as true as long as no evidence of its falsity arises.
Actuarialism , on the other hand, is the branch of knowledge that consists of the application of mathematical and statistical models to evaluate risks. Actuaries, in this framework, work in the field of finance and insurance , analyzing how uncertainty impacts entities financially.
The actuary, therefore, specializes in the valuation of random events to promote correct decisions. It is important to highlight that the actuary cannot cancel uncertainty: his role is the development and application of tools that allow forecasting the consequences of events in the future .
An actuary is a professional in Economic Sciences who has a certain specialization.
A professional in Economic Sciences
In the same way, we cannot ignore that the term actuary is also used to refer to another type of individual. Specifically, it is used to mention a professional with a degree in Economic Sciences who ends up specializing in insurance, capital markets, merchandise, social security and even risk operations.
Specifically, this knowledge is what leads him to be an expert prepared and qualified to not only be in charge of the management of different types of companies but also to shape all types of insurance. In your first function you will proceed to analyze the possible risks that the company may have as well as plan its strategies or work on modifications to be able to change its financial situation, for example.
Based on all of the above, we find the fact that there are many companies and entities that may require the presence of an actuary. This would be the case, for example, of companies specialized in portfolio management, insurance companies, government entities of all types...