We help the executive management team think through the company’s strategy, understand the risks inherent in the strategy and help formulate the risk appetite-the amount of risk the company is prepared to undertake in pursuit of its strategy- as well as help them define their level of risk tolerance. We ensure that management has an ERM program in place to manage risk and that the ERM program is sufficient to inform the board of the major risks facing the company.
We review the board’s committee structure and oversight processes to ensure that there is effective oversight of the major risks facing the business. Each standing committee of the board typically has oversight responsibility of risks inherent within its area of oversight. We look at all the board’s committees: audit, compensation, nominating/governance to ensure proper oversight of categories of risk that may pose a particular concern to the organization.
We also discuss with the Board of Directors does it make sense to create a risk committee and weigh the pros and cons of forming one. Some boards may want to focus more on risk management processes to help ensure a robust risk governance system is in place, and it may make sense to assign this responsibility to a risk committee.
Implementation of ERM Program
We can work with an organization in helping them create an ERM program. We will assist an organization in implementing an ERM framework with ERM tools to gather risk information and set-up a monitoring and evaluation process for their ERM program.
Evaluation of Enterprise Risk Management Program
Our team of consultants can provide an independent evaluation of your ERM program and address any gaps or deficiencies in the processes of your ERM program. We will also review how the ERM program is being managed and how risk information is being communicated throughout the organization and brought to the attention of the executive management team and the board of directors.