1
Q
ERM definition
A
ERM involves considering the risks of the enterprise as a whole, rather than considering individual risks in isolation. This allows for concentration of risk arising from a variety of sources within an enterprise to be appreciated, and for diversifying effects of risks to be allowed for.
2
Q
Why companies implement an ERM programme
A
Previous management failures Near miss Disaster in similar organisation Regulatory Stakeholder concern
3
Q
Benefits or ERM
A
Better reporting of risk Increased organisation effectiveness Improved business performance Align strategy with risk appetite identify and manage risks across entire organisation Minimise losses Price/manage/transfer risks better Efficiency of resources Link between business growth, corporate risk and return Allocate capital more efficiently React quicker
ST 9
flashcards
Decks in class (23)
# Cards
-
Chapter 23 - Market risk management9
-
Chapter 29
-
Chapter 24 - Credit risk management6
-
Chapter 25 - Management of operational and other risks6
-
Chapter 10 - Risk measurement4
-
Chapter 317
-
Chapter 13
-
Chapter 11 - Introduction to risk modelling5
-
Chapter 14 - Copulas4
-
Chapter 4 - Stakeholders5
-
Chapter 15 - Fitting models5
-
Chapter 5 - Risk appetite6
-
Chapter 6 - Risk management function3
-
Chapter 7 - Risk management processes5
-
Chapter 8 - Risk identification5
-
Chapter 9 - Risk classification10
-
Chapter 16 - Extreme Value Theory4
-
Chapter 17 - Use of models in ERM5
-
Chapter 18 - Analysis of market risk7
-
Chapter 19 - Analysis of credit risk7
-
Chapter 20 - Analysis of operational risk5
-
Chapter 21 - Analysis of other risks6
-
Chapter 22 - Risk optimisation and risk responses12
