WHAT IS ENTERPRISE RISK MANAGEMENT?
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.
The risk of loss resulting from inadequate or failed enterprise-level oversight, planning oversight, or control.
The risk of loss resulting from a customer or provider failing to perform as agreed on credit extended.
The risk of loss resulting from inadequate or failed processes, people, systems, or external events.
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