Enterprise Risk Management Framework

Financial services businesses have put in place enterprise risk management (ERM) frameworks that set out the Board’s expectations for risk management in the business.

Crescendo Advisors has worked extensively in the design, review, enhancement and implementation of risk management and governance frameworks, including two significant risk transformations of 12 and 19 months’ duration. Amongst other things, we have covered risk reviews, risk policies (insurance and asset management), risk universe and preferences, risk governance, including implementation of Three Lines of Defence governance model, oversight of outsourcing and operational risk KRI reporting.

 In addition, Crescendo Advisors has delivered a number of related projects, including

  • review of the readiness of an insurer’s internal audit function to meet Solvency II regulatory requirements (at the request of the PRA);

  • work on a Section 166 review focusing on governance and risk management; and

  • gap analysis of conduct risk requirements at a medium-size insurer (at the request of the FCA).

The main feature of the delivery of these activities is an open-mind perspective in identifying what does and does not work and advising the client accordingly.   

You may want to look at some of the posts in Crescendo Advisors’ blog on specific aspects of risk management (here) and the objective of ERM (here).

 

Current issue

Most ERM frameworks envisage an external review of the framework taking place every few years.  Your business may be about undergo this exercise.  The perspective adopted for this review is crucial to ensure the company obtains value for money and value-added insights.  Get in touch if you would like to discuss further. 

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