Enterprise Risk Management

Enterprise Risk Management ("ERM") is an approach to risk management that encompasses the complete risk management cycle, ensuring that the bank or firm takes a consistent and integrated firm-wide approach to managing all of its risks and their interactive effects. It involves a senior management top-down approach to ensure that ALL risks in the firm and their effects are considered in the risk management process, together with a bottom up process to ensure that it is embedded into the business.

The process includes:

• Risk Identification - identify all of the risks that are relevant and the degree to which they can affect the firm.
• Risk Measurement - the ability to quantify those risks that can be quantified, together with the impact on the control environment, allows a firm to prioritize its risks by the degree to which they can hurt the firm.
• Risk Monitoring - the ability to monitor risk and disseminate the resulting information to the right manager at the right time is critical. This involves designing risk reports and reporting processes that are meaningful and provide the information necessary to evaluate the risks, enabling management to make optimal decisions.
• Risk Mitigation - this is the actual proactive management of the risk profile; ensuring that it remains within the firm's risk appetite, based on the goals and mission of the firm and providing conclusions on the active management of these risks.

How to achieve Risk Success in Implementing ERM

We can help you ensure that your risk management process is comprehensive and firm through providing consulting services such as:

• Risk process evaluations - we will assess your ERM practices, compare them to international best practice, to determine potential points of weakness, and develop and implement an approach to mitigate those weaknesses.
• Risk assessments - we will assess practices and methodologies on a more micro oriented basis and develop an approach to ensuring that any individual area meets your firm's risk management guidelines consistent with its risk appetite, goals and missions.
• Conduct best practices benchmarking to ensure that your approach meets the demands of relevant rules, regulations and the demands of corporate governance.
• Review the ERM systems architecture to ensure that it meets the demands set by stakeholders, is effective and efficient, recommending and selecting appropriate software solutions as required.
• Review and develop appropriate Pillar 2 disclosures (ICAAP) to meet the needs of the regulators and appropriately articulate the relevant control structure.

At Risk Reward we have experienced risk consultants who are well known experts in the development of enterprise risk management frameworks and solutions. We know the value that they add and the assurance they can provide your risk department or Board.