Crunching Numbers To Avoid Risky Business

Chris Mahoney's job is all about risk.

She's not a race car driver; she's an actuary, an expert in helping organizations assess the probability of certain events and ensuring that clients are prepared for the costs if they do. She specializes in pension plans, and as a consultant, she helps companies, nonprofit groups and agencies make sure their investment strategies are sound.

It's the sort of job that's always changing, said Mahoney, 40. "As long as you focus on your clients' issues and problems, the job is always interesting."

Actuaries held about 18,000 jobs in 2004, with six of 10 working in the insurance industry, according to the Bureau of Labor Statistics. The rest work in a variety of industries, such as health care and finance, and in agencies, including those that manage Social Security and Medicare.

This is not a job for the math-phobe. A strong background in mathematics is essential, but that's just the beginning. The series of about 10 exams that an actuary must pass to gain full professional status also covers economics, finance and law. Passing all the tests can take about 10 years. It is easy to get sidetracked. "You need to be very self-motivated to get through them while you're also working," Mahoney said.

Two professional societies administer the exams: the Society of Actuaries and the Casualty Actuarial Society.

But if you can survive those tests, there is a payoff: The median annual salary for an actuary was $76,340 in 2004, the BLS said.

And you thought there was no use for those calculus classes in the real world.

-- Mary Ellen Slayter