Enterprise Risk Management

Introduction

The aim of this seminar is to introduce participants to enterprise risk management, its major features, risk assessments, risk management and the implementation under the key regulations.

Key features include:

• enterprise risk management and why banks adopt a holistic approach
• assessing the five key risks
• adding risks across risk types
• the ERM process
• challenges of implementing ERM and the frameworks banks adopt.

Objectives

At the end of this seminar participants will have a basic understanding of:

• enterprise risk management and why it is important in banks
• the ERM process and how banks benefit from a holistic approach to risk management
• the identification, recognition and assessment of the five key risks and the impact of the Basel Accord
• the importance of balanced scorecards and their use in ERM
• ERM, corporate governance, and the frameworks adopted by banks to ensure successful implementation

This seminar is intended for those are new to ERM and will play a role in the implementation of ERM within their institution or who will be involved in assessing a banks ERM implementation. It will be of use to:

• risk managers and analysts
• senior management
• it and operations professionals
• internal and external auditors
• compliance personnel
• regulators and supervisory professionals
• business managers
• anyone new to ERM within financial services
• suppliers and consultants to banks and the risk management industry.

Pre-requisites

No prior experience of enterprise risk management is required as this seminar first covers the basics before moving on to more advanced topics. However it is assumed that all delegates are familiar with common financial terms and have a basic understanding of banking and the functions of a financial institution. 

Content

DAY 1 – An introduction to enterprise risk management

Defining Enterprise Risk Management

• What is risk?
• What is ERM?
• Why is ERM important?
• The benefits of ERM
• The history of ERM
• The types of risk
• Risk appetite
• Key regulations
  • Basel Accord
  • Sarbanes-Oxley

Enterprise Risk Management

• The ERM process
• Risk control
• Risk monitoring and reporting
• The risk management function
• Portfolio management
• New product development
• Case study

Risk recognition and assessment

• The Basel Committee guidance
• Risk recognition and assessment
  • Credit risk
  • Market risk
  • Interest rate risk
  • Liquidity risk
  • Operational risk 
• Adding risk across risk types
• Economic Capital
• Case studies

DAY 2 – Corporate governance, ERM frameworks and implementation

Scorecards and risk identification

• Identifying risks
• What is a scorecard?
• Balanced scorecards
• How are they used in ERM?

Integrating ERM across the bank

• Risk policies
• Creating a culture of risk awareness
• The role of senior management
• ERM and business processes

ERM and corporate governance

• What is corporate governance
• The importance of corporate governance
• Key governance features
• How ERM is important to corporate governance
• Key regulations

Enterprise Risk management frameworks in banks

• Why do banks use standards?
• What standards are used
• Implementing an ERM framework
• Commonly adopted frameworks
  • COSO
  • IRM
  • AIRMIC
  • ALARM risk