In very simple terms, ERM empowers the Chief Risk Officer (often the Group MD or CEO) to measure, monitor and oversee all the risks the firm is taking in the form of a single, user-friendly report that can be accessed from within a central “command bunker” in real-time. Its purpose is to provide a meaningful risk oversight tool that avoids the pitfalls of traditional “silo” working and “silo” risk-taking. “Silo” working involves business units operating independently of each other and not always in the best interests of the firm as a whole.
Put bluntly, no CEO can attest properly that risk is managed effectively across the firm unless it can be measured, assessed and overseen in a single report that is available on a real-time basis at the click of a button. Anything less involves guesswork.
Within any organisation, there are both tactical and strategic risk-takers. The strategic risk-takers – CEO, directors and senior managers – formulate the business strategy and agree that certain risks can and must be taken, whereas others are to be expressly avoided. This strategy is communicated throughout the organisation using a risk appetite statement (RAS) which is often called an Operating Plan.
The concept of ERM is not new but became a priority following the 2008 financial crisis which revealed in very harsh terms that many organisations did not actually have a full appreciation of all the risks being taken across the firm. Instead, risks were simply lumped together based on reports from individual business units. ERM requires an integrated risk management process that clearly measures all risks at all levels in all operating units and combines them into a single risk monitoring tool.
This highly interactive and workshop-style course will enable delegates to discuss strategic ERM frameworks, understand the key processes for implementing an effective ERM function and how to put in place the appropriate ERM architecture. It will deal with set up, implementation, operation, management, and exceptional issues and will demonstrate how this important corporate governance tool can be used to manage the risk profile across the firm. It will cover economic capital allocation, risk appetite, risk allocation, and risk budgeting and risk reporting.
Who Should Attend
Anyone with an interest in the topic seeking an update, new information or merely a refresher
Workshop Style & Delivery
Highly interactive and packed with case studies, opportunities to engage in discussion and if applicable, swap “war stories”