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Enterprise Risk Management (ERM)

Course Overview

This program explores the weaknesses in risk management and focuses on the frameworks, strategies, process and governance of ERM. The program provides an introduction to the main concepts of ERM, the relevant Basel Standards and comprehensive, leading-edge ERM theories and practices.

Course Objectives

    • participants will be imparted with knowledge to appreciate enterprise risk management (ERM)
    • they will explore the weaknesses in risk management and focus on the frameworks, strategies, process and governance of ERM
    • participants will be exposed to the enterprise approach to managing risk and typology of risk management failure

Duration – 3 Days

Curriculum

Overview of Risk Management
Definition, Objectives & Benefits of ERM, Risk vs Uncertainty - The Black Swan Effect

Design & Documentation of an ERM Framework
Framework Elements, COSO vs ISO31000

Risk Governance
Understanding the Role of the Board and Executive Management

Understanding ERM Concepts
Establishing a Risk Universe, Risk Appetite vs Risk Tolerance, Role of Risk Culture in ERM

Establishing a Risk Appetite Framework
Aligning Risk Appetite to Firm Strategy, Risk Appetite Statements, Quantitative vs Qualitative

The ERM Maturity Model

The Risk Management Process
Documenting the Risk Universe & Register, Risk Identification Techniques

Risk Assessment Approaches - Qualitative vs Quantitative
Preparing the Probability & Impact Grids, Documenting the Risk Matrix, EaR/VaR as Quantitative Risk Measures, Residual Risk Ranking

Assigning Responses to Identified Risks
Determining Effectiveness of Responses, Transiting from Inherent to Residual Risk, Documenting an Action Plan for residual Risks

Role of Internal Control in Risk Management

Implementing an ERM System