ERM Keys

WHAT IS ENTERPRISE RISK MANAGEMENT?

ERM DEFINED

Enterprise Risk Management is a methodology and tool set utilized to identify, analyze, and administer the risks an entity encounters while conducting business.

Regardless of your current situation or your future strategies, ERM performed correctly embraces all 360 degrees of the risk management landscape: Governance Risk, Credit Risk, Operational Risk and Market Risk.

GOVERNANCE RISK

The risk of loss resulting from inadequate or failed enterprise-level oversight, planning oversight, or control. 

CREDIT RISK

The risk of loss resulting from a customer or provider failing to perform as agreed on credit extended.

OPERATIONAL RISK

The risk of loss resulting from inadequate or failed processes, people, systems, or external events.

MARKET RISK

The risk of loss resulting from adverse changes in liquidity or the availability, level, or volatility of prices, securities, rates, commodities, or currencies.

REGULATOR & STANDARDS BOARDS
GUIDELINES ON RISK MANAGEMENT

Standards for the Risk Governance Framework

Identifying and evaluating risks

Acting on risk threats to capital preservation

Forward-looking Expected Loss guidelines

Predictive models to estimate future loss

Dodd-Frank Stress Testing (DFAST)

Impact on credit, balance sheet, operations

Enterprise risk management framework development

Emphasis on forward-looking insight to risk exposure

The Art of Strategic ERM™
© 2007-2022 OnPoint Risk Advisors Intellectual Property. All Rights Reserved