ERM Risk Oversight by Board of Directors
This leading international financial institution used to present transactional recommendations to its Board of Directors in a format that was very structured, but in which the type and level of risks to be undertaken were not explicitly made apparent. As part of its Enterprise Risk Management (ERM) framework, a task force redesigned the approach to risk identification, evaluation and presentation, with particular consideration given to counterparty risk. Thereafter, each recommendation to the Board of Directors showed, on a comparable basis, the key risks associated with the transaction upfront, in decreasing order of importance, thereby enhancing the organization’s risk governance and confidence from the Board of Directors.
