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22 Cards in this Set
- Front
- Back
chief risk officer
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difference between traditional risk management and erm
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traditional considers only risk that affect organization. erm expands risk focus to include financial and strategic risks
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4. areas traditional risk management differs from erm
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- risk categories
- strategic integration - performance metrics - organizational structure |
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2 categories of risk associated with traditional risk management
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1. hazard risks
2. operational risks |
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hazard risks
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risks that include damage to property
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operational risks
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risks that arise out of service or processing activities
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2 categories of risks associated with erm
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1. financial risks
2. strategic risks |
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upside risk
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risk that organization will outperform strategic goals
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business model
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consideration included in organization erm goal
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1. why organization develop program
2. intended scope of program 3. How program assist organization to meet goals 4. organization risk appetite |
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to integrate erm
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1. develop erm goal
2. identify risks 3. analyze critical risks 4. treat critical risks. prioritize 5. monitor critical risks |
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treatment for risks of erm
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accept
mitigate optimize |
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2 important benefits of the erm approach
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enhanced decision making
improved risk communication |
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iso 31000:2009
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provides international standard for risk management. focuses on commonly accepted principles.
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4 frameworks for risk management implementation
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bs 31190
coso ii as/nzs 4360 ferma |
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difference between basel ii and solvency ii
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basel issued by basel in 2004 and establishes risk and capital management rules that bank holds capital reserves
solvency issued by European commission in 2007 and consists of regulatory requirements of insurance firms |
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bs 31100
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British standards institution as a code of practice for rm. code establishes principle and terminology for rm and provides recommendations
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primary goals for bs 31100
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- ensuring organization achieves goals
- ensuring risks are managed in a specific area - overseeing rm in an org - providing reasonable assurance of org rm |
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coso ii
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defines erm as a process driven from organizations board that establish an organization strategy to manage risk within appetite
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as/nz 4360
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genetic framework fire managing risks
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ferma
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federation of European rm association. adopted the risk management standard published in uk in ,2002. allows org to report compliance with best practices
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elements of ferma
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- consistent terminology
- process rm can be executed - organized rn structure - rm goals |