ENTERPRISE RISK MANAGEMENT (ERM)
"Failing to plan for effective risk management is a blatant attempt to deny the existence of risk. The most effective way to deny the existence of risk is to either close an entity or avoid starting one altogether. It is crucial to have the courage to focus not only on risk but also on the potential rewards." - Vincent Santeng
ERM Strategy and Culture
Our ERM process includes defining objectives, identifying risks, assessing impact, implementing responses, and effective communication with monitoring. We identify critical risks for strategic success through tailored solutions. With experience, we offer risk management, compliance training, and consultancy to diverse industries, helping implement integrated risk management solutions with a risk-reward perspective for decision-makers and specialists.
ERM is Beyond Maths
ERM includes complex risk models rooted in mathematics, yet driven by principles from economics, financial and portfolio management. Ensuring comprehension by stakeholders with diverse interests is vital, as their perspectives may differ from risk experts.
Main Classified Risk Types
Risk is inherent in every business event, and management must identify, analyse, evaluate, and respond to risks to meet stakeholder expectations. Each organisation faces unique risks in terms of type, magnitude, and impact. While Basel Accord provides general guidance, regulators use internal risk models recognising each organisation's uniqueness. Various risk types and sources exist, with Basel Accord focusing on credit, market, operational, and liquidity risks.
The Cycle of Risk Management
The risk management process involves risk identification, assessing severity and priority, implementing risk responses, and portfolio development. At RMCT, we consider culture, strategy, performance targets, compliance, organisational structure, governance, sustainability, technology, and government policies in our training and implementation approach. Planning for risk mitigation is a key component of our methodology.