Characteristics of Strong Risk Assessments and Tools to Monitor and Report Results

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.