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Introduction
Traditionally, organisations have managed the risks of different business unit separately using what is called the “silo-by-silo” approach, which refers to the groups of tall storage bins or silos seen on farms and used for grain storage. There have been a number of developments since in late 1980s and onward, which have allowed for the development of a more integrated approach to managing risk across an organisation at the product, position, business unit, and firm wide levels. The more concentric and integrated approach is commonly referred to as enterprise-wide risk management (ERM). The ERM process has evolved due to developments in risk measurement and corporate governance during the latter part of the twentieth century, including the development of asset- and earning-based value-atrisk (VaR) measures and the internal control guidance initiatives such as the COSO Framework developed by the Committee of Sponsoring Organisations of the Treadway Commission (COSO).
This program is designed to present the different perspectives, concepts, benefits, limitations, best practice and directions inherent to the enterprise risk
management (ERM) process. ERM risks and opportunities are discussed. The roles and responsibilities of stages and players of the ERM process are detailed. The scope and best practice of the risk response plans/strategies and risk measurement functions associated with the ERM process are presented. Business ethics, corporate governance, internal control guidance and regulation initiatives are summarised in an ERM context.
Topics:
• Rationale for ERM - managing risk interdependencies versus traditional “silo” approaches
• Establishing best practice of an ERM function at different organisational levels
• Lessons learned from the inadequacy of nonintegrated risk management functions
• COSO internal control framework as a part of an ERM standard
• Risk objectives setting and developing a ERM mission statement
• Corporate culture, communication, organisational effectiveness and the ERM function
On Completion You Will Learn How To:
• Integrate ERM with COSO internal controls
• Control and monitor activities, risk reviews and internal auditing for ERM functions
• Establish scope and practice of key ERM organisational principles and risk categories
• Drive an effective risk culture - ERM cost / benefit tradeoffs
Lead Facilitator:
Dr. John Dalle Molle, Senior Quantitative Risk Analyst, FRA Consulting, Singapore
Dr. Dalle Molle is an independent financial market consultant specialising in quantitative credit, market and operational risk management, analytics and modeling from an enterprise-wide perspective. Recently, he has been also focusing on energy and commodity risk management. He has presented executive educational and professional training programs in Africa, the Americas, Asia-Pacific Region, South Asia, the Middle East, and various European countries. His clients include several large financial institutions and central banks.
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