Financial Institutions provide great value to the American economy. But that value comes with risks. Risk Assessments are at the core of a strong Enterprise Risk Management (ERM) Program. Therefore, developing strong risk assessments for all key areas of the financial institution is crucial.

Strategic-minded institutions do not strive to eliminate risk or minimize it. They strive to manage risk at the enterprise-wide level so that they incur just enough of the right kind of risk to effectively pursue their strategic goals. This is referred to as “Optimal Risk-Taking.”

Review the characteristics of strong Risk Assessments to ensure you address key areas of your institution and discuss how to develop an enterprise-wide process to conduct Risk Assessments. Gain practical tools and examples to implement in your organization immediately while strengthening your existing Risk Assessments and creating new ones.

Learning Objectives:

• Understand Enterprise Risk Management (ERM) and its key components.
• Explore the three phases of ERM, emphasizing the role of Risk Assessments.
• Enhance existing Risk Assessments through the Risk Assessment Process.
• Comprehend the goals and characteristics of effective Risk Assessments.
• Explore the relationship between Risk Assessment Systems (RAS) and CAMELS rating.
• Identify and prioritize the top eight risks along with other significant ones.
• Master the use of a Matrix for ERM Risk Assessments, a core methodology.
• Differentiate types of risk assessments based on risk areas and their components.
• Examine examples of Monitoring and Reporting tools for ongoing risk management.

Duration: 90-minutes

Recorded on July 25, 2024.