Enterprise Risk Management (ERM) is a method which provides a given firm to have an overview of all its key risks and associated information, therefore enabling the board and management team to make balanced, cross region wide risk decisions.
Enterprise Risk is hence the aggregation of the complete set of risks faced by a firm. In financial services firms these risks will include:
- credit risk
- market risk
- currency risk
- liquidity risk
- business/strategic risk
- interest rate risk
- operational risks
- counterparty risk
- concentration risk
- … among others.
