From risk management to ERM
Abstract
At one point in time, there was self-insurance. Then came risk management. Now comes the era of enterprise risk management (ERM). Traditional risk management will always be necessary, but ERM will complement existing risk activities by extending the field to cover all core risks as well as emerging and strategic opportunities, because without taking risks, organisations gain no value. In addition, ERM will be taken seriously by financial participants and stakeholders if an organisation has a risk champion in the guise of a CRO, an emerging C-level position with its own set of requirements and proper training. This paper will present the main elements of an ERM framework and characteristics of different types of ERM. It will elaborate on the main roles and responsibilities of a CRO along with potential designations that would contribute to making the position fully valued and recognised by society.
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Author's Biography
Michel Rochette is a professional enterprise risk manager who assists organisations to implement the main components of an ERM framework, including risk and economic capital processes, in order to create long-term value for their enterprise. Michel has been working in the risk management field since 1992 and has extensive hands-on as well as strategic risk experience. Michel’s professional goal is not to sell ERM solutions to companies but to advise firms and make ethical recommendations on the best risk management practices for them. In addition to his advisory and corporate roles, Michel is also recognised as a thought leader in the ERM field, contributing innovative and pertinent presentations, articles, training and intellectual capital to the industry.
Citation
Rochette, Michel (2009, September 1). From risk management to ERM. In the Journal of Risk Management in Financial Institutions, Volume 2, Issue 4. https://doi.org/10.69554/OTTD9862.
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