Euromoney Learning Solutions

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About the course

Develop an effective ERM framework and get ahead in the enterprise space

This course is about developing and implementing an effective, enterprise risk management (ERM) framework. Delegates will learn the key skillsets required for an effective ERM function, the systems software to be considered and how data should be collected and managed.

Participants will learn:

  • How to define ERM within the firm’s strategic plan
  • Corporate governance and the role of the Board of Directors and Management
  • How to get started and actually implement ERM
  • How to establish a risk appetite and risk profile
  • How to structure and develop a sound enterprise risk management framework

Please select the location where you would like to attend the training programme for the course agenda.


Day 1

Introduction and Overview

Modern Risk Management Vs Traditional Risk Management

What is risk management?

  • Problems with the definition
  • Traditional role of risk vis-a-vis the board and executive management

What’s needed?

Enterprise risk management

  • Definitions: COSO & CAS
  • Risk as strategic-enabler
  • Risk, EXCO and the board

Some ERM basics

  • Dynamic notion of risk
  • Risk as the state of information
  • Risk exposure types
  • Aggregating exposure across the enterprise
  • The risk profile

Risk exposure to performance and strategy

Aligning ERM and the Business Model

Case discussion

Roles and Responsibilities in ERM

  • Board oversight and the risk appetite
  • Executive management use of ERM for navigation
  • CRO responsibilities

Case Exercises

  • The global petroleum case
  • The Russian frozen-chicken case

Homework: Home Depot Case Study

Day 2

Review of Day 1’s Concepts

Group Discussion of Homework

  • Insights from the case study

Establishing ERM: Key Ingredients

A Risk Executive: The Chief Risk Officer

  • Establishing the Chief Risk Officer
  • Comparing the CRO to the traditional Head of Risk

The CRO’s Risk Function

  • Key people
  • Tools
  • Systems

The ERM Process Implemented by the CRO

  • In-class exercise and discussion on the ERM


Homework: Positioning the Chief Risk Officer for Success Reading

Day 3

Recap of Day 2

The CRO’s Toolkit

VaR and Tail loss measures

Risk adjusted performance measurement (RAPM): a primer

  • Various RAPM measures compared and objectives defined
  • Risk-Adjusted Return on Capital (RaROC)
  • Risk-Adjusted-Return on Risk-Adjusted Capital
  • (RaROROC)
  • RAPM from an individual perspective
  • RAPM from a portfolio perspective
  • RAPM using capital allocations for market, credit and operational risks

Examples in Excel

  • The SWOT Matrix
  • Heat maps/risk matrices
  • Quantifying severity and frequency
  • Aggregation of risks
  • Dashboards
  • Setting the risk profile and the risk appetite with the tools

Key Ingredients: The Board Risk Committee

  • The Risk Committee’s design and function
  • Risk Committee Charter
  • Ideal elements of the Risk Committee meeting

Case Discussion: Positioning the Chief Risk Officer for Success

Homework: Implementing ERM

Day 4

Discussion of Implementing ERM Homework

  • Agreeing on the business model
  • Creating risk categories with owners and users
  • Identification of risks in categories
  • Develop a Standard Management Process
  • Implement the process manually
  • Build the ERM Knowledge warehouse

Hurdles to ERM Establishment and Implementation

High-level difficulties

  • Senior-management buy-in
  • Conglomerate nightmares
  • Merger problems/benefits

Technical difficulties

  • Getting model results for market, credit and operational risk to coincide
  • Difficulties with combining model inputs
  • Difficulties in combining model outputs

Getting an ERM function underway in 6 months Concluding remarks

Trust the experts

Maurice Ewing

Maurice is a global management consultant, former banking executive and experienced, public company board member that has worked in over 60 countries. He has been an advisor and consultant to boards and executive teams with numerous, major banks, investment banks, central banks and investment fun...


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