Risk Governance and ERM Program Capability

Enterprise Risk Management (ERM) is a best practice in corporate governance, and SRA can help you assess your current system and identify areas for improvement.

An effective ERM Program assessment can enhance the value of your ERM Program. The assessment will also identify where the ERM Program is effective today and where “Best Practices” have been effectively instituted.

SRA’s objective assessment reviews four key stages: Risk Governance, ERM Program, Departmental Risk & Control Practices and Capital Planning, and applies a rating criteria for each key stage and sub-components, along with recommendations for improvement:

Risk Governance:

  • Board of Director’s Responsibilities
  • Risk Governance Framework
  • Board and Management Committee Structure and Charters
  • Risk Appetite
  • ERM Policies
  • Board Reporting

ERM Program:

  • Key Risk Identification and Reporting
  • Risk Profiles Developed and Updated
  • Roles and Responsibilities Defined and Documented
  • Integration into Strategic Planning and Ongoing Management Reporting
  • Risk Improvement Programs Identified

Departmental Risk & Control Activities

  • Departmental Procedures and Processes Documented
  • Key Risks Identified, Reported and Monitored
  • Department Risk Profile Established
  • Risk and Compliance Monitoring Plans Documented

Capital Planning and Adequacy

  • Capital Planning Process is Documented
  • Capital Simulation Model Developed
  • “Baseline” and “Severely Adverse” Scenarios Developed
  • Impact of Key Risks Quantified by Risk Category
  • Assumptions Model Financial Impact of Risk Scenarios and Strategic Imperatives

Benefits of SRA’s Assessment

  • Identify shortcomings in ERM program
  • Identify ways to increase the program’s effectiveness and impact
  • Provide recommendations to ensure corporate governance is properly aligned and enhancing risk management
  • Assist in implementing recommendations