To do this, Actuaries analyse historical and current data to anticipate future occurrences by quantifying and valuing them. They (for example) can determine the necessary investments for future financial security. Therefore, they can calculate the necessary funds a company should reserve in advance for potential costly events.

Actuaries are highly skilled in mathematical, statistical, analytical, and strategic thinking theories used to forecast uncertainty. This is based on their expertise in manipulating data to determine the likelihood of future events leading to financial loss.

Actuaries often apply probability, statistics, and financial mathematics in their job. Using statistical techniques, they estimate potential financial losses by determining the probability of random events occurring within different time frames. Having a strong understanding of calculus, algebra, and advanced statistics is necessary for achieving success in this field.