Creating synergy by integrating enterprise risk management and governance
Abstract
Enterprise risk management and governance are inextricably linked to the quality and effectiveness of risk management. This paper examines the risk management weaknesses related to some recent unanticipated events in financial institutions, including specific examples related to New Century Financial, UBS and Société Générale. It also looks at how more effective integration of ERM and governance might have improved the outcomes, with a particular focus on transparency of risk exposures. Effective ERM complements governance, and good governance complements an effective ERM programme. Synergy is created when they are integrated effectively.
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Author's Biography
Jean Hinrichs recently retired from Fannie Mae as Chief Audit Executive, where she restructured internal audit and created a highperformance team during a large financial restatement. Previously, Jean was Chief Risk Officer at Barclays Global Investors (BGI) where she restructured risk management that included credit and market risk, operational risk, legal, compliance, internal audit, insurance and corporate security. She initially joined BGI in 1997 to create a global internal audit function. Jean has over 15 years’ experience creating or transforming enterprise risk management and internal audit functions. She has an MBA from San Francisco State University and is a Certified Internal Auditor and Certified Fraud Examiner. She is Past President of the San Francisco Chapter of the Institute of Internal Auditors and was Co- Regional Director of the Bay Area Chapter of The Professional Risk Managers’ International Association.
Citation
Hinrichs, Jean (2009, March 1). Creating synergy by integrating enterprise risk management and governance. In the Journal of Risk Management in Financial Institutions, Volume 2, Issue 2. https://doi.org/10.69554/WXCQ3664.
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