Please enable JavaScript.
Coggle requires JavaScript to display documents.
Financial ERM (Steps (Recognize risk context (Set risk appetite), Risk…
Financial ERM
Steps
Recognize risk context
Set risk appetite
Risk taxonomy
Risk identification
Risk assessment
Compare against risk appetite
Risk decision/response
Implementation / Risk control
Monitoring
Reporting and Communication
Why ERM?
Consistency
Centralization
Prioritize risks
Save costs
React more quickly to emerging risks
Flexibility
any company
Prevent failure
Develop org's objectives
Decision on new project
Pricing
Why manage risks?
Societal benefits
Reduce or avoid the impacts of global crisis
Management
Meet return targets with as little risk as possible
Reduce risks of them losing jobs
Firm
Reduce return volatility
Reduce amt of risk capital needed
Good for credit rating, less interference from regulators
Project
Better risk/return trade-off
Corporate Gov
BOD
Constitution
Education and Performance
Compensation
Transparency
Models of RM
"Three lines of defense"
Offense and defense
Policy and policing
Partnership
Key features
Manage risks on a holistic basis
Consistency
Diversification benefits