Enterprise-Wide Risk Management

Enterprise-wide risk management (ERM) is a process of coordinated risk management that places greater emphasis on co-operation among departments to manage an organisation's range of risks as a whole. ERM offers a framework to effectively manage uncertainty, respond to risk and exploit opportunities as they arise. The framework comprises of policies, processes, tools, reports and ideal governance structure. The ERM framework encompasses the following elements:

Diagnostic Review

 

Involves diagnostic review of risk management-related processes of the organisation, which forms the basis for overall ERM implementation. The study includes review of:

  • Risk management structure
  • Underlying policies and procedures for overall risk
  • Capital management

Risk Identification

 

A library of processes and sub-processes is defined and risk underlying each is identified. Loss data capture processes are reviewed and defined. The template for capturing loss events is also defined.
 

Risk Assessment & Measurement

 

Risks are assessed based on templates specifically designed according to nature of risk. In case of risks that can be quantified, the measurement models are defined. Additionally, the loss data captured is analysed to assess likely impact on an organisation's capital.
 

Risk Control & Mitigation

 

Underlying controls vis-a-vis the risks are identified and assessed for effectiveness and comprehensiveness. A corrective action plan is defined, as also a limit management framework to mitigate impact of risks.
 

Risk Monitoring & Reporting

 

Risk management monitoring and reporting templates are defined. Related reporting frequency and workflow is also defined.
 

Risk Based Decision Making

 

To ensure that risk management is embedded into strategic decision-making, a framework for risk-based pricing and a risk-based portfolio strategy is designed.

 

E-RAM Consultancy

Our E-Ram Consultancy includes:
 

Gap Analysis

 

An internal credit rating process helps to discriminate among credit quality of borrowers, and to quantify individual credit risk as a measurable metric.
 

RAM Framework


CRS’s risk assessment model (RAM) helps a lending institution automate its internal credit rating process. This widely popular model is a workflow-based solution for hosting internal rating models, capable of assessing credit risk of  borrowers.
 

ASP - Model

 

This innovative application service provider (ASP) model is meant for use of RAM by all key constituents of financial markets, especially co-operative banks and small NBFCs.
 

Benefits of the service

  • Zero regular maintenance efforts and allied costs
  • Billing per-use approach
  • Best-in-class methodology and approach to credit risk assessment
  • Availability of updated risk models
  • Standardisation of risk assessment and financial analysis
  • Helps capture and store borrower information in an accessible medium
  • Compliance to regulator-prescribed best-practice framework

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Questions?

  • For any risk solutions related queries, please contact
    +91 22 3342 8266
    risksolutions@crisil.com