Enterprise Risk Management: Essentials for Financial and Non-Financial Managers

"It's not the strongest of the species that survive, nor the most intelligent, but those that are the most responsive to change."
– Charles Darwin

Risk is a fact of business life. Taking and managing risk is part of what companies must do to create profits and shareholder value. However, the global financial crisis and the numerous corporate meltdowns suggest that many companies neither fully understand the risks that they get exposed to nor manage them well.

That is now changing.  Companies around the world are investing in building up robust ERM systems that can identify key vulnerabilities. Integrated risk management has now become one of the top concerns with boards, regulators, investors, and rating agencies.

This program breaks down the silos of market, credit and operational risks. It takes you through the process of Enterprise Wide Risk Management (ERM), which brings together all these risks into a common paradigm and a single analytical framework. ERM is now the global best practice standard for risk management, not just an innovative concept. This program takes you through the corporate governance issues tied to the implementation of ERM systems, the resulting role of the Chief Risk Officer (CRO), and the links to value creation.

Topics

• Introduction
• Why manage risk?
• The building blocks of Risk Management
• Financial Crises and Risk Management

• Overview of Enterprise Risk Management (ERM)
• What do senior managers need to know?
• The theory and practice of ERM
• The role of the CRO and ERM systems

• Value creation from ERM
• Maximizing financial, operational and strategic flexibility
• Enhancing capital allocation and performance management
• Managing market and credit risks
• Risk adjusted resource allocation and performance measurement

• The “How” of ERM
• How to prepare a risk profile and measure corporate risk tolerances
• Managing volatility and economic capital
• Hedging and value creation
• How to identify Key Risk Indicators (KRIs)
• Incorporating strategic risk into ERM systems

• ERM framework and corporate governance
• Developing a risk aware corporate culture
• Managing global and systemic risks
• Managing operational risk

• Conclusion
• Common Failures in risk systems
• Future trends in corporate risk management

Learning Outcomes

As a result of attending this program, participants will:

• How to do a risk audit of their firm
• How to establish a business case for ERM and overcome organizational barriers
• How to implement and integrate ERM into strategic and business decisions
• How to set risk tolerances, risk appetite, and Key Risk Indicators (KRIs)
• The governance aspects of ERM systems and the role of the CRO
• How to create a risk aware corporate culture
• How to design appropriate risk measurement, management and reporting systems that fail less often and create maximum value
• How to allocate economic capital
• How to adapt to global and systemic risks

Who Should Attend

Participants will include:

• Managers across all functional areas seeking a broad-based knowledge of ERM;
• Finance executives seeking an in-depth understanding of ERM techniques;
• Profit center heads in financial and non-financial corporations who want to learn ERM and understand how it can lead to value creation;
• Corporate Treasurers/Controllers/CFOs who want to enhance their knowledge about ERM systems and strategies;
• Corporate finance professionals and management/risk consultants;
• Corporate planning / development managers and business strategists;
• Executives in audit, compliance and risk control;
• Regulators.

This program does not assume any specific knowledge in finance. This program also provides a largely non-quantitative overview of concepts, so high-level math skills are not required.

Costs

Individual Participants: $1,290
Package Pricing: 2 class day per participant

Available Discounts