Enterprise Risk Management (ERM)

Enterprise Risk Management (ERM) goes beyond siloed risk management to look at risk across the entire organization. This course teaches how to create a holistic ERM framework that aligns risk-taking with strategy, capital allocation, and performance management to enhance resilience and value.

Course Objectives:

• Transition from traditional risk management to an ERM approach.
• Align the ERM framework with the COSO ERM 2017 standard.
• Integrate risk management into strategic planning and performance.
• Develop an ERM culture that encourages proactive risk discussion.
• Report on enterprise-wide risks to the Board and Executives.

Target Audience:

• Chief Risk Officers (CROs).
• Strategy Managers and Financial Directors.
• Senior Managers responsible for Business Units.

Course Outline:

Day 1: Introduction to ERM & COSO Framework

• Evolution of ERM: Why traditional risk management is not enough.
• The COSO ERM Framework: Governance, Culture, Strategy, and Objective-setting.
• The Benefits of an Enterprise-wide View of Risk.
• Roles and Responsibilities in ERM (The Three Lines of Defense).

Day 2: Risk in Strategy and Objective-Setting

• Analyzing the Business Context and Strategic Alternatives.
• Defining Risk Appetite in the context of Strategy.
• Linking Risk to Performance Targets and KPIs.
• Identifying Emerging Risks and Black Swan Events.

Day 3: Risk Identification and Assessment in ERM

• Identifying Interdependencies between Risks across Departments.
• Using Risk Heat Maps and Dashboards for Enterprise View.
• Scenario Analysis and Stress Testing for Strategic Risks.
• Risk Aggregation and Portfolio View of Risk.

Day 4: ERM Implementation and Integration

• Developing ERM Policies and Procedures.
• Integrating ERM with Internal Audit and Compliance.
• Technology Tools for ERM (GRC Software).
• Managing Changes in the ERM Environment.

Day 5: Reporting and Sustaining ERM

• Board-level Reporting on Enterprise Risks.
• Measuring the ROI of ERM.
• Building a Risk-Aware Culture through Communication and Training.
• Final Practical Workshop: Developing an ERM Implementation Roadmap.