The document discusses setting an organization's risk appetite, which is a combination of its risk capacity and risk tolerance. It explains that determining risk appetite involves multiple steps, including assessing the potential impacts of specific risks on the organization's business drivers, identifying risk thresholds, and developing qualitative and quantitative statements for the organization's risk appetite. The full process requires facilitated workshops and sign-off from the Board to fully establish the risk appetite statement.
The Role of Risk Appetite in embedding the ORSA and linking with Business Str...Susan Young
The document discusses embedding an organization's Own Risk and Solvency Assessment (ORSA) and linking it to business strategy and risk appetite. It covers defining risk limits, articulating risk appetite statements, embedding risk appetite throughout the organization, and linking risk appetite to the ORSA process. The ORSA helps ensure risk appetite remains aligned with business plans and strategies and is a key component of an effective risk management system.
A good risk appetite implementation process leverages existing practices, represents the aggregate view of risk across all lines of business and risk categories, and creates a dynamic structure that allows for internal and external changes in risk. Learn more about the 10 aspects of a robust and evolving risk appetite framework in this excerpt from the Credit Risk Management Audio Conference Series.
The document provides guidance on formulating and implementing operational risk appetite statements (ORAS). It discusses the objectives, benefits and critical success factors of having an ORAS. The key components that may be included in an ORAS are scales to qualitatively express risk appetite, risk measures to translate statements into metrics, risk categories aligned to the organization's primary risks, and risk tolerances including triggers to indicate if appetite is exceeded. The document also outlines principles for formulating, implementing, governing and monitoring an ORAS once established.
Risk Appetite: A new Menu under Basel 3? Pieter Klaassen (UBS - Firm-wide Risk Control & Methodology) voor het Zanders Risicomanagement Seminar 1 november 2012
This document discusses risk appetite and enterprise risk management (ERM). It provides context from 2006-2008 regarding risk appetite definitions from UK regulators. It defines risk appetite as the amount of risk an entity is willing to accept in pursuit of value and in line with strategic objectives. The value of articulating risk appetite is that it allows an entity to clarify desired risks, set the tone from senior management, and establish clear risk preferences. Stakeholders like the board, regulators, rating agencies, and others can influence an entity's risk appetite statement. Key components of a risk appetite include risk capacity, appetite, targets, and tolerances. An example risk appetite statement from ING is also provided.
Risk Appetite: new challenges to manage an insurance companyPhilippe Foulquier
Based on a survey of European insurance companies, the results call into question some of the risk appetite indicators chosen by insurers. The study shows how risk appetite is applied to all decisions in a fully objective manner and it signals the need for a profound culture change with regard to risk-return analysis. It is on this point, which lies at the heart of the competition among players in the insurance sector – evaluating the performance of allocated capital by activity, measured against the risks incurred – that a number of structural shifts, innovations and changes will have to be made
Risk Reimagined! Series- The Relationship Between Strategy, Governance and Ri...Resolver Inc.
Copyright notice: The following slides are intended for professional use within an organization for discussion purposes only. Any other uses or modifications are strictly prohibited.
In this presentation, Norman Marks and Richard Anderson discuss two related topics. The first is the relationship between the strategies set by the organization, its governance, and risks to its objectives. Their conversation addresses:
• How does a senior executive or board member gauge the effect of risk on corporate objectives?
• Is it enough to review a list of top risks at every board meeting?
• How does the board know whether risk management is adding value?
• How do you measure success?
• Where do reward and opportunity factor in?
The second topic is one that is heavily debated among practitioners, whether the concepts of risk appetite and tolerance can be applied effectively in practice. Areas they cover include:
• What is risk appetite? What is risk tolerance?
• Is it a useful concept or an overly complicated piece of mumbo jumbo?
• How can you help the board and top management set desired levels of risk and also help decision-makers take the right level of the right risks?
• Does it make sense to be “risk averse”?
The Role of Risk Appetite in embedding the ORSA and linking with Business Str...Susan Young
The document discusses embedding an organization's Own Risk and Solvency Assessment (ORSA) and linking it to business strategy and risk appetite. It covers defining risk limits, articulating risk appetite statements, embedding risk appetite throughout the organization, and linking risk appetite to the ORSA process. The ORSA helps ensure risk appetite remains aligned with business plans and strategies and is a key component of an effective risk management system.
A good risk appetite implementation process leverages existing practices, represents the aggregate view of risk across all lines of business and risk categories, and creates a dynamic structure that allows for internal and external changes in risk. Learn more about the 10 aspects of a robust and evolving risk appetite framework in this excerpt from the Credit Risk Management Audio Conference Series.
The document provides guidance on formulating and implementing operational risk appetite statements (ORAS). It discusses the objectives, benefits and critical success factors of having an ORAS. The key components that may be included in an ORAS are scales to qualitatively express risk appetite, risk measures to translate statements into metrics, risk categories aligned to the organization's primary risks, and risk tolerances including triggers to indicate if appetite is exceeded. The document also outlines principles for formulating, implementing, governing and monitoring an ORAS once established.
Risk Appetite: A new Menu under Basel 3? Pieter Klaassen (UBS - Firm-wide Risk Control & Methodology) voor het Zanders Risicomanagement Seminar 1 november 2012
This document discusses risk appetite and enterprise risk management (ERM). It provides context from 2006-2008 regarding risk appetite definitions from UK regulators. It defines risk appetite as the amount of risk an entity is willing to accept in pursuit of value and in line with strategic objectives. The value of articulating risk appetite is that it allows an entity to clarify desired risks, set the tone from senior management, and establish clear risk preferences. Stakeholders like the board, regulators, rating agencies, and others can influence an entity's risk appetite statement. Key components of a risk appetite include risk capacity, appetite, targets, and tolerances. An example risk appetite statement from ING is also provided.
Risk Appetite: new challenges to manage an insurance companyPhilippe Foulquier
Based on a survey of European insurance companies, the results call into question some of the risk appetite indicators chosen by insurers. The study shows how risk appetite is applied to all decisions in a fully objective manner and it signals the need for a profound culture change with regard to risk-return analysis. It is on this point, which lies at the heart of the competition among players in the insurance sector – evaluating the performance of allocated capital by activity, measured against the risks incurred – that a number of structural shifts, innovations and changes will have to be made
Risk Reimagined! Series- The Relationship Between Strategy, Governance and Ri...Resolver Inc.
Copyright notice: The following slides are intended for professional use within an organization for discussion purposes only. Any other uses or modifications are strictly prohibited.
In this presentation, Norman Marks and Richard Anderson discuss two related topics. The first is the relationship between the strategies set by the organization, its governance, and risks to its objectives. Their conversation addresses:
• How does a senior executive or board member gauge the effect of risk on corporate objectives?
• Is it enough to review a list of top risks at every board meeting?
• How does the board know whether risk management is adding value?
• How do you measure success?
• Where do reward and opportunity factor in?
The second topic is one that is heavily debated among practitioners, whether the concepts of risk appetite and tolerance can be applied effectively in practice. Areas they cover include:
• What is risk appetite? What is risk tolerance?
• Is it a useful concept or an overly complicated piece of mumbo jumbo?
• How can you help the board and top management set desired levels of risk and also help decision-makers take the right level of the right risks?
• Does it make sense to be “risk averse”?
The document discusses understanding and articulating an organization's risk appetite. It begins by defining risk appetite as the amount of risk an organization is willing to take on in pursuit of its strategic objectives. It then discusses how a clearly understood and articulated risk appetite statement can help align decision making with risk management. The document provides an overview of developing a risk appetite statement, including aligning the risk profile with business plans, determining risk thresholds, and getting board approval of a formal risk appetite statement. It emphasizes linking the risk appetite to performance monitoring and reporting to assess compliance with the stated risk appetite.
This document provides guidance on developing and implementing a risk appetite framework. It discusses how establishing risk appetite is important for meeting corporate governance requirements and addressing stakeholder expectations. It also notes that while the concept of risk appetite is straightforward, effectively defining and applying it in practice presents challenges. The document aims to help organizations better manage risk and meet governance duties by offering practical advice to boards and executives on assessing their risk tolerance. It received input from various professional associations and risk consulting firms who endorse the guidance and see risk appetite as a key topic for ongoing discussion.
Governance in Enterprise Risk Management
Presented by Michael Lawrence
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Integrating Risk Appetite With Strategy Feb 14 2011Andrew Smart
The document provides an overview of integrating risk appetite with strategy. It discusses:
- The objectives of introducing a risk appetite framework and providing clarity on risk appetite's role in the overall strategy process.
- How risk-based performance management integrates traditional performance and risk management to enable sustainable strategy execution with risk appetite at the center.
- The process for setting risk appetite involves workshops with the board and executive team to define the risk dimensions, levels, and boundaries that shape the organization's risk taking.
- Risk appetite should influence strategic discussions around the business model and objectives to ensure the strategy can be executed within the defined risk tolerances.
The document provides an overview of a risk appetite webcast held by Towers Perrin and PartnerRe on July 14, 2009. It includes biographies of the speakers, discussion topics to be covered such as defining risk appetite and PartnerRe's approach, and an illustrative case study on how a board of directors and management can work together to set risk appetite and limits. The goal is to help organizations better articulate their risk tolerance both qualitatively and quantitatively.
Grant Thornton - Risk appetite: A market study UK 2012Grant Thornton
Grant Thornton's inaugural market study on risk appetite. The Risk Appetite study, the first of its kind, canvassed the views of 43 chief executive officers and managing directors from leading London insurers to define current maturity of practice, answering some of the common questions coming out of the market. Our intention is to conduct this study periodically; monitoring overall progress and trends across the market in relation to risk appetite.
This document summarizes the key concepts of enterprise risk management. It discusses how risk management aims to help organizations achieve their mission and avoid surprises by dealing with uncertainty. The risk management process involves identifying potential risks, evaluating and prioritizing them, selecting risk management techniques, and monitoring risks. The roles of the board, senior management, and risk management committee in the risk management process are also outlined.
This document discusses risk appetite and establishing risk boundaries. It provides definitions of risk appetite from various sources and how it has evolved over time. It also discusses the importance of articulating risk appetite and influencing stakeholders such as boards, regulators, rating agencies, and other groups. Components of risk appetite are defined including risk capacity, appetite, target, tolerance, and limits.
Most organizations have multiple project going on concurrently. They need a framework that allows them to evaluate (and mitigate) project risk in a way that reflects the potential business impact of this portfolio of projects.
Aligning strategy decisions with risk appetite
Presented by David Shearer
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Cheshire
Shaping Your Culture via Risk Appetite Andrew Smart
This document discusses the importance of risk appetite and embedding risk culture at organizations. It begins by defining risk appetite as the amount and type of risk an entity is willing to accept over a set period of time to achieve its objectives. The document then notes that weaknesses in risk appetite governance contributed to the financial crisis and that properly establishing and monitoring risk appetite is a board responsibility. It stresses that risk appetite should be integrated into strategic planning and outlines how organizations can set, execute, and monitor their risk appetite.
An Enterprise Risk Management (ERM) programme can help organizations achieve strategic objectives more effectively by taking a systematic approach to identifying, assessing, and addressing risks across the whole organization rather than operating in silos. Key aspects of an effective ERM programme include linking risk strategy to business strategy, establishing clear risk management responsibilities, and using risk information to improve decision-making and investment choices. Regular risk assessment and monitoring can optimize risk management and control activities while supporting organizational learning and competitiveness.
A new emphasis on enterprise risk management from regulators has heightened awareness among bankers to get educated and adopt these best practices at their institution. In response to this increased focus, the RMA ERM Council developed the ERM framework and associated competencies, which became the foundation for a series of highly practical workbooks for implementing effective ERM.
Enterprise Risk Management as a Core Management Processregio12
The document summarizes the key findings from a study examining best practices in enterprise risk management (ERM) across multiple organizations. The study identified 10 principal findings related to optimizing ERM structures, supporting methodologies, using ERM for decision-making, and evaluating ERM performance. Best practices included establishing executive-level ERM support, using a variety of risk assessment methods, focusing on risk-informed culture and communication, evaluating ERM through performance metrics, and ensuring ERM maturity.
The document discusses enterprise risk management (ERM) and its importance for organizations. ERM involves identifying, assessing, and managing risks across an entire organization in a holistic manner. It helps organizations align strategy and risk appetite, enhance decision making, reduce surprises, seize opportunities, and improve capital allocation to create long-term shareholder value. The document outlines key concepts of ERM including its components, implementation steps, and how it benefits organizations.
Risk mitigation strategies in SMEs (small and medium business)Sanjukta Basu
1) Risk management is important for all businesses, especially small and medium enterprises (SMEs), as they face greater risks due to their size and limitations.
2) SMEs are exposed to specific risks like sole proprietorship structures, limited funding options, tough competition from larger players, and high employee turnover.
3) Effective risk management in SMEs includes reducing risks to manageable levels, ensuring regulatory compliance, and customizing tools to assess their risks.
This document discusses risk management and provides guidance on implementing an effective risk management process. It addresses common challenges like complexity, bias, and skepticism. The key messages are:
1) Risk management is a simple process that involves identifying, assessing, planning for, and managing risks. When applied with common sense, it should be part of routine project management.
2) An effective risk management process provides benefits like informed decision making, understanding risk exposure, and early warning of problems.
3) Risk management is a positive activity aimed at supporting stakeholders, not an ineffective overhead. It deserves consideration on all but the simplest projects.
This document discusses deploying risk management in small and medium enterprises (SMEs). It defines risk and outlines the types of risks facing SMEs, including credit, operational, market, liquidity, legal, and compliance risks. It also describes enterprise risk management (ERM), which deals with risks and opportunities affecting value creation. The key components of an ERM framework include risk assessment, risk response, control activities, information and communication, and monitoring. Implementing ERM can help SMEs align strategy with risk appetite, reduce losses, improve overall risk ratings, and facilitate long-term survival.
Sharing Practice on Enterprise Risk Management (ERM)Diane Christina
The document discusses enterprise risk management (ERM). It provides an example ERM universe that includes strategic risks, physical assets risks, human factors risks, and financial risks. It also discusses some key aspects of effective ERM implementation, including establishing a risk governance framework, developing a risk management infrastructure, and following a risk management process of identifying, assessing, managing, and monitoring risks. The document is intended to share practices on ERM.
An assessment of risk management of small and medium scale enterprises in nig...Alexander Decker
This document summarizes a research study that assessed risk management among small and medium enterprises (SMEs) in Nigeria. The study examined SME accounting records and insurance policies. It found that SMEs do not maintain proper accounts, making it difficult to identify and manage risks. Additionally, 84% of SMEs did not have insurance to cover business risks outside of their control. The study recommends SMEs maintain proper accounting records to better plan for and manage risks, and purchase insurance to protect against losses from uncontrollable risks.
Financial services face both physical and transitional risks regarding climate change. No matter what you believe to be true about climate science, the reality is that your bank must address it.
Real Challenges of Enterprise Risk ManagementAndrew Koh
Let’s get real. Today’s business landscape is ever evolving and fiercely competitive driven by game changers, value creators, innovators in trying to match changing consumers’ demographics and expectations.
Subject risk expert and practitioner Andrew Koh, seeks to address the complex issue on how to manage the key challenges firms face in using their Enterprise Risk Management (“ERM”) framework to support firms in operating within these competitive and disruptive business climate, that remain crucial for business success, and takes readers further on some of the deeper issues and challenges they face in using enterprise risk management framework, the real situation facing ERM managers as they seek to communicate and to work together with stakeholders in achieving common ERM objectives by using common methodologies and enterprise values; the corresponding possible explanations behind them; as well as highlighting the top 3 challenges that boards and senior management teams must and need to overcome to ensure the successful implementation and running of their ERM programs.
In each of these slides, Andrew will share his thoughts and opinions, drawing from his almost quarter of a century in risk and governance experience working across banking, finance, cards and payment sectors. Looking from the lens of a thought leader, risk and governance expert, readers are provided with simple, practical and refreshing ideas on how to approach and manage these key ERM challenges in firms operating in ever increasingly complex environments across different industries, geographical boundaries and regulatory requirements. The real issues and challenges
Readers will precisely understand why the objective in effectively using an ERM approach is critical for business success. ERM is no longer an option but a must do for firms to manage risks so as to remain highly competitive. Companies who embraced ERM early and steadfastly strive to improve and align to their business strategies, stand to reap the benefits and gained competitive advantages in achieving their corporate objectives. Regardless, all firms will continue to face real challenges managing enterprise risk management programs so as to be effective and to avoid incurring losses from unidentified or unquantified potential risks.
I hope readers who read and followed these slides have gained a better insight on how to approach and manage key challenges in driving enterprise risk management programs within their own firms. This is especially important in today’s ever changing and competitive business landscape, coupled by market disruptive innovations.
The document discusses understanding and articulating an organization's risk appetite. It begins by defining risk appetite as the amount of risk an organization is willing to take on in pursuit of its strategic objectives. It then discusses how a clearly understood and articulated risk appetite statement can help align decision making with risk management. The document provides an overview of developing a risk appetite statement, including aligning the risk profile with business plans, determining risk thresholds, and getting board approval of a formal risk appetite statement. It emphasizes linking the risk appetite to performance monitoring and reporting to assess compliance with the stated risk appetite.
This document provides guidance on developing and implementing a risk appetite framework. It discusses how establishing risk appetite is important for meeting corporate governance requirements and addressing stakeholder expectations. It also notes that while the concept of risk appetite is straightforward, effectively defining and applying it in practice presents challenges. The document aims to help organizations better manage risk and meet governance duties by offering practical advice to boards and executives on assessing their risk tolerance. It received input from various professional associations and risk consulting firms who endorse the guidance and see risk appetite as a key topic for ongoing discussion.
Governance in Enterprise Risk Management
Presented by Michael Lawrence
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Integrating Risk Appetite With Strategy Feb 14 2011Andrew Smart
The document provides an overview of integrating risk appetite with strategy. It discusses:
- The objectives of introducing a risk appetite framework and providing clarity on risk appetite's role in the overall strategy process.
- How risk-based performance management integrates traditional performance and risk management to enable sustainable strategy execution with risk appetite at the center.
- The process for setting risk appetite involves workshops with the board and executive team to define the risk dimensions, levels, and boundaries that shape the organization's risk taking.
- Risk appetite should influence strategic discussions around the business model and objectives to ensure the strategy can be executed within the defined risk tolerances.
The document provides an overview of a risk appetite webcast held by Towers Perrin and PartnerRe on July 14, 2009. It includes biographies of the speakers, discussion topics to be covered such as defining risk appetite and PartnerRe's approach, and an illustrative case study on how a board of directors and management can work together to set risk appetite and limits. The goal is to help organizations better articulate their risk tolerance both qualitatively and quantitatively.
Grant Thornton - Risk appetite: A market study UK 2012Grant Thornton
Grant Thornton's inaugural market study on risk appetite. The Risk Appetite study, the first of its kind, canvassed the views of 43 chief executive officers and managing directors from leading London insurers to define current maturity of practice, answering some of the common questions coming out of the market. Our intention is to conduct this study periodically; monitoring overall progress and trends across the market in relation to risk appetite.
This document summarizes the key concepts of enterprise risk management. It discusses how risk management aims to help organizations achieve their mission and avoid surprises by dealing with uncertainty. The risk management process involves identifying potential risks, evaluating and prioritizing them, selecting risk management techniques, and monitoring risks. The roles of the board, senior management, and risk management committee in the risk management process are also outlined.
This document discusses risk appetite and establishing risk boundaries. It provides definitions of risk appetite from various sources and how it has evolved over time. It also discusses the importance of articulating risk appetite and influencing stakeholders such as boards, regulators, rating agencies, and other groups. Components of risk appetite are defined including risk capacity, appetite, target, tolerance, and limits.
Most organizations have multiple project going on concurrently. They need a framework that allows them to evaluate (and mitigate) project risk in a way that reflects the potential business impact of this portfolio of projects.
Aligning strategy decisions with risk appetite
Presented by David Shearer
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Cheshire
Shaping Your Culture via Risk Appetite Andrew Smart
This document discusses the importance of risk appetite and embedding risk culture at organizations. It begins by defining risk appetite as the amount and type of risk an entity is willing to accept over a set period of time to achieve its objectives. The document then notes that weaknesses in risk appetite governance contributed to the financial crisis and that properly establishing and monitoring risk appetite is a board responsibility. It stresses that risk appetite should be integrated into strategic planning and outlines how organizations can set, execute, and monitor their risk appetite.
An Enterprise Risk Management (ERM) programme can help organizations achieve strategic objectives more effectively by taking a systematic approach to identifying, assessing, and addressing risks across the whole organization rather than operating in silos. Key aspects of an effective ERM programme include linking risk strategy to business strategy, establishing clear risk management responsibilities, and using risk information to improve decision-making and investment choices. Regular risk assessment and monitoring can optimize risk management and control activities while supporting organizational learning and competitiveness.
A new emphasis on enterprise risk management from regulators has heightened awareness among bankers to get educated and adopt these best practices at their institution. In response to this increased focus, the RMA ERM Council developed the ERM framework and associated competencies, which became the foundation for a series of highly practical workbooks for implementing effective ERM.
Enterprise Risk Management as a Core Management Processregio12
The document summarizes the key findings from a study examining best practices in enterprise risk management (ERM) across multiple organizations. The study identified 10 principal findings related to optimizing ERM structures, supporting methodologies, using ERM for decision-making, and evaluating ERM performance. Best practices included establishing executive-level ERM support, using a variety of risk assessment methods, focusing on risk-informed culture and communication, evaluating ERM through performance metrics, and ensuring ERM maturity.
The document discusses enterprise risk management (ERM) and its importance for organizations. ERM involves identifying, assessing, and managing risks across an entire organization in a holistic manner. It helps organizations align strategy and risk appetite, enhance decision making, reduce surprises, seize opportunities, and improve capital allocation to create long-term shareholder value. The document outlines key concepts of ERM including its components, implementation steps, and how it benefits organizations.
Risk mitigation strategies in SMEs (small and medium business)Sanjukta Basu
1) Risk management is important for all businesses, especially small and medium enterprises (SMEs), as they face greater risks due to their size and limitations.
2) SMEs are exposed to specific risks like sole proprietorship structures, limited funding options, tough competition from larger players, and high employee turnover.
3) Effective risk management in SMEs includes reducing risks to manageable levels, ensuring regulatory compliance, and customizing tools to assess their risks.
This document discusses risk management and provides guidance on implementing an effective risk management process. It addresses common challenges like complexity, bias, and skepticism. The key messages are:
1) Risk management is a simple process that involves identifying, assessing, planning for, and managing risks. When applied with common sense, it should be part of routine project management.
2) An effective risk management process provides benefits like informed decision making, understanding risk exposure, and early warning of problems.
3) Risk management is a positive activity aimed at supporting stakeholders, not an ineffective overhead. It deserves consideration on all but the simplest projects.
This document discusses deploying risk management in small and medium enterprises (SMEs). It defines risk and outlines the types of risks facing SMEs, including credit, operational, market, liquidity, legal, and compliance risks. It also describes enterprise risk management (ERM), which deals with risks and opportunities affecting value creation. The key components of an ERM framework include risk assessment, risk response, control activities, information and communication, and monitoring. Implementing ERM can help SMEs align strategy with risk appetite, reduce losses, improve overall risk ratings, and facilitate long-term survival.
Sharing Practice on Enterprise Risk Management (ERM)Diane Christina
The document discusses enterprise risk management (ERM). It provides an example ERM universe that includes strategic risks, physical assets risks, human factors risks, and financial risks. It also discusses some key aspects of effective ERM implementation, including establishing a risk governance framework, developing a risk management infrastructure, and following a risk management process of identifying, assessing, managing, and monitoring risks. The document is intended to share practices on ERM.
An assessment of risk management of small and medium scale enterprises in nig...Alexander Decker
This document summarizes a research study that assessed risk management among small and medium enterprises (SMEs) in Nigeria. The study examined SME accounting records and insurance policies. It found that SMEs do not maintain proper accounts, making it difficult to identify and manage risks. Additionally, 84% of SMEs did not have insurance to cover business risks outside of their control. The study recommends SMEs maintain proper accounting records to better plan for and manage risks, and purchase insurance to protect against losses from uncontrollable risks.
Financial services face both physical and transitional risks regarding climate change. No matter what you believe to be true about climate science, the reality is that your bank must address it.
Real Challenges of Enterprise Risk ManagementAndrew Koh
Let’s get real. Today’s business landscape is ever evolving and fiercely competitive driven by game changers, value creators, innovators in trying to match changing consumers’ demographics and expectations.
Subject risk expert and practitioner Andrew Koh, seeks to address the complex issue on how to manage the key challenges firms face in using their Enterprise Risk Management (“ERM”) framework to support firms in operating within these competitive and disruptive business climate, that remain crucial for business success, and takes readers further on some of the deeper issues and challenges they face in using enterprise risk management framework, the real situation facing ERM managers as they seek to communicate and to work together with stakeholders in achieving common ERM objectives by using common methodologies and enterprise values; the corresponding possible explanations behind them; as well as highlighting the top 3 challenges that boards and senior management teams must and need to overcome to ensure the successful implementation and running of their ERM programs.
In each of these slides, Andrew will share his thoughts and opinions, drawing from his almost quarter of a century in risk and governance experience working across banking, finance, cards and payment sectors. Looking from the lens of a thought leader, risk and governance expert, readers are provided with simple, practical and refreshing ideas on how to approach and manage these key ERM challenges in firms operating in ever increasingly complex environments across different industries, geographical boundaries and regulatory requirements. The real issues and challenges
Readers will precisely understand why the objective in effectively using an ERM approach is critical for business success. ERM is no longer an option but a must do for firms to manage risks so as to remain highly competitive. Companies who embraced ERM early and steadfastly strive to improve and align to their business strategies, stand to reap the benefits and gained competitive advantages in achieving their corporate objectives. Regardless, all firms will continue to face real challenges managing enterprise risk management programs so as to be effective and to avoid incurring losses from unidentified or unquantified potential risks.
I hope readers who read and followed these slides have gained a better insight on how to approach and manage key challenges in driving enterprise risk management programs within their own firms. This is especially important in today’s ever changing and competitive business landscape, coupled by market disruptive innovations.
These slides are from The Risk Doctor, David Hillson's, section of the presentation at the recent APM Wessex branch afternoon risk workshop. This event was held at the Ageas Bowl in Southampton on Tuesday 1st April 2014.
David Hillson is an honorary fellow of APM and is known globally as 'The Risk Doctor'. David is well-known as an excellent speaker, presenter and trainer. Countless individuals, teams and organisations have benefited from his blend of thought-leadership with practical application, presented in an accessible style that combines clarity with humour. David’s speaking is guided by the Risk Doctor motto: “Understand profoundly so you can explain simply”.
David sat on the panel of experts for this workshop-based event and shared his expertise with delegates who were looking for a learning experience in risk.
1. The document discusses challenges in identifying emerging risks and proposes frameworks to assess emerging risks. It notes the increasing complexity, volume and interconnectedness of risks.
2. Traditional risk assessments often consider likelihood and impact, but the document advocates also considering risk velocity and duration. Emerging risks are often unexpected, high impact events rather than predictable low probability risks.
3. Leading companies focus on potential risk consequences rather than likelihood alone. Assessing business value at risk, threat magnitude, existing defenses and mitigation responses/costs is proposed for emerging risk evaluation.
Board Governance and Emerging Risks in the C21FERMA
On 10 July 2015 FERMA, ecoDa and AIG organised jointly a event in Brussels that brought together directors, risk managers and insurers from across Europe to share perspectives on the quality of the Risk conversation at Board level and to generate ideas for improving it.
Role of Enterprise Risk Management in Risk Based CapitalSonjai Kumar, SIRM
This presentation is given in the First South Asian Actuarial Conference held in Colombo on 12th and 13th July 2017.
The presentation is on how does risk management can help in optimizing the capital requirement in the life insurance industry
Strategically managing your insurance programmikaelastafrace
This document provides an agenda and overview for a strategic insurance review session. It discusses key insurance concepts like risk management, types of insurance coverage, and the importance of regularly assessing an organization's insurance program. It aims to help attendees understand how to identify insurable risks, ensure adequate coverage, and integrate insurance into the overall risk management strategy. The session will include presentations, group activities analyzing scenarios, and a discussion of follow-up actions.
The document provides an introduction to COBIT 5 for Risk, a framework for IT risk management. It describes the drivers and benefits of risk management guidance, including providing substantiated risk opinions, guidance on risk appetite, and quantitative risk assessments. It outlines target audiences such as risk professionals, boards, and IT/business management. It then details different risk perspectives covered by COBIT 5 for Risk, such as the risk function, risk management processes, risk scenarios, and risk response. It also discusses risk capacity and appetite. Finally, it outlines how COBIT 5 for Risk is aligned with other risk standards like ISO 31000 and COSO.
Risk intelligence: How to reliably mitigate transaction risk and secure clean...Graeme Cross
This risk intelligence white paper is part of a series of publications from Aon Strategic Advisors & Transaction Solutions (ASATS). The series focuses on risk management and mitigation and is specifically created to help:
• Chief executives and corporate management board members pursuing growth strategies through M&A, or divesting
• Corporate tax managers, development officers and legal counsel responsible for planning, overseeing and / or delivering planned value from M&A
• Chief executive and chief financial officers of private-equity backed portfolio companies
• Private equity executives, portfolio managers and risk officers
• Corporate finance, accounting, tax and legal advisors servicing corporate and private
equity clients
Risk management involves identifying risks, understanding their potential impacts, and taking actions to address risks. The document discusses risk management in the context of a children and young people's services department. It provides examples of past failures that demonstrate the need for effective risk management. The department has developed a new approach, including a risk register that identifies specific risks, owners, and review periods. The goal is to make risk management a core part of the organization's culture and decision-making.
Risk management involves identifying potential threats and opportunities and taking actions to reduce threats and maximize opportunities. The document discusses risk management principles and responsibilities within an organization. It provides examples of high profile corporate and safety failures as drivers for improved risk management. The need for risk management in children and family services is highlighted, along with lessons learned from failures in Rotherham. Implementation of a new risk management approach including a revised risk register format and clear roles is described.
Risk management involves identifying potential threats and opportunities and taking actions to reduce threats and maximize opportunities. The document discusses risk management principles and responsibilities within an organization. It provides examples of high profile corporate and safety failures as drivers for improved risk management. The need for risk management in children and young services to prevent failures is emphasized. Steps taken in Rotherham to improve risk management culture and processes are outlined, including revising policies, training, and monitoring risks at all levels of the organization.
Risk management involves identifying risks, understanding their potential impacts, and taking actions to reduce threats and maximize opportunities. The document discusses risk management principles and responsibilities within an organization. It provides examples of high-profile failures that demonstrate the importance of effective risk management. The organization discussed is working to strengthen its risk management practices through improved risk identification, training, and governance.
Heading into 2020, The Risk Management Association is focusing on eight risks. Learn about the top risks the financial services industry faces and how you can address them.
This document provides guidance on establishing a framework for managing business risk. It recommends defining business objectives and acceptable risk levels. It also suggests appointing a risk manager to oversee the process and communicate the framework throughout the organization. The key steps are to identify all potential risks through brainstorming and collecting internal/external data, then prioritize risks based on likelihood and potential impact. Once risks are identified, actions can be taken to reduce, retain, or transfer each risk. An integrated, ongoing approach helps ensure all risks are addressed and the risk profile is monitored over time.
JLT is an international insurance brokerage that specializes in motorsports insurance. They offer a wide range of insurance products for all aspects of motorsports, including organizer's liability, cancellation/abandonment coverage, personal accident policies, and physical damage coverage for vehicles. JLT has expertise in placing global insurance programs and works with a variety of motorsports clients such as governing bodies, teams, tracks, and individuals.
This document is an issue of StrategicRISK magazine focusing on risk management in Australia. The main stories discuss the results of a survey of Australian risk managers finding increased competition and failure to innovate as top concerns. It also profiles Telstra's chief risk officer discussing how failure to innovate is a key strategic risk for the company. Other articles preview an upcoming risk management conference in Melbourne and discuss major weather events and insurance claims in Sydney from recent storms.
Bending the bank: Next steps when stress testing calls for changeLibby Bierman
Like information, impact does not flow in just one direction. After you stress a portfolio or look at a future growth model under stressed conditions, you should go back to your risk appetite framework to assess what changes your institution is not only willing to make but also is capable of handling in light of the projected potential loss and volatility.
In this webinar, Jay Gallo, partner at RMPI Consulting, discussed what to look for in stress test results, key components of your risk appetite framework, and best practices for implementing changes appropriately.
What are the key components of holistic risk management? This report, sponsored by SAP, investigates the organisational measures companies must take to address the totality of the risks they face. Read more>> http://bit.ly/1LsYvUx
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