Enterprise Risk Management
Enterprise Risk Management (ERM) assesses and aligns risk, both internal and external, to ensure the success of the Credit Union's objectives and financial stability. This systematic process identifies potential events that could cause damage in the future—not just the preset. ERM is a strategic tool, rather than simply a tool to evaluate compliance.
Benefits of ERM
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Provides a comprehensive view organizational risk
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Improves communication around risk management
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Establishes a philsophy regarding risk and risk culture
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Identifies and mitigates potential risks, resulting in fewer surprises and losses
You Can Expect ...
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An initial evaluation to jointly assess risk management processes, evaluate effectiveness, and identify necessary improvements.
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An action plan to develop strategies to implement the Credit Union's vision. This includes timeliness and the delegation of duties to individuals—potentially developing the role of a Risk Officer and Risk Committee.
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A risk assessment to assess the risk according to the metric set by the National Credit Union Administration. A risk profile will be developed for each metric, including:
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Strategic risk
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Transaction risk
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Credit risk
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Interest rate risk
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Liquidity risk
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Compliance risk
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Reputation risk
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Reporting that merges both risk evaluation and discussion into the process.
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A routine re-evaluation that is performed periodically. ERM is not a static project, but a routine process that grows and changes with the Credit Union.
