Risk professionals often focus on enterprise risk management (ERM) as a separate entity rather than a means to enhance an organization’s objectives. For Enterprise Risk Management to be successful, it should center on: Adapting to changes and providing value to the organization.
There is fixed process to implement an Enterprise Risk Management program that is 100% efficient. Check out the following guidelines to go about implementing Enterprise Risk Management.
- Define the value add from ERM
Whether value is expressed as market share, profit, or managing penalties, fines and reputational damage and how does enterprise risk management improve the organization’s objectives? In other words, what business need will be met through a structured ERM approach?
2. Research and understand different standards and frameworks
If you operate in a regulated environment, you indeed may need to comply with specific risk management standards. Research and find out as much as you can and this will give a solid foundation to decide what elements are the most vital to your ERM initiative. Also, Organizations must integrate Artificial Intelligence and Machine Learning tools to the existing traditional risk management frameworks and processes.
3. Allocate risk owners
Identify and delegate resources that can be held accountable for the risk management plan decisions and execution. This person will likely need to rely on others to make the plan work and manage interconnected risks, but naming an individual risk “owner” will help move the chosen response plan to action. The risk owner should ensure that AI and ML tools and processes are in place to meet the constantly changing rules and compliances.
4. Have Customized real-time Dash-board and Alerts
Dash-boards customized reports highlight the executive level summarized data and drill down analytics for enterprise risk management that makes decision making in your organization simpler and faster. EagleAI Tradewatch dashboard can be helpful in Proactively managing the organization’s risks by alerting on significant anomalies automatically and provide unrivaled market insights on global financial markets along with Workflow integration for follow-up actions on detected issues.
5. Keep it simple
To the Risk and Compliance Mangers, the ERM program mandate is less important than gaining value by making better-informed decisions about risk. While a formal training program may be characteristic of a mature program, simple process training, using EagleAi Tradewatch risk management solution is quite appropriate when combined with traditional risk management process.
Now with EagleAi TradeWatch and its functionally rich modules such as Trading Risk, Market Data Risk, Client Connectivity Risk, Position Risk, Compliance Risk, and Fraud Risk you can identify trading vulnerabilities and breaches before they become a serious liability for your enterprise.
Request a demo today. We can show you how EagleAi, a fully managed service can mitigate your enterprise’s risks at a fraction of cost and could even uncover lurking issues that could surface up to cause major losses.