Researches shows that the primary drivers of ERM are

          Corporate  Governance requirements and other regulatory pressures

          Management and investor’s demand of strategic and operating risk.

The benefits of full ERM implementation are increased management accountability and better governance practices, greater managerial understanding of and consensus about corporate strategy, and, in some cases, higher credit ratings and hence a lower cost of capital.

Image001

The tools and techniques to measure the impact of strategic risks appear to vary, depending on the stage of ERM implementation. For advanced ERM companies, the most frequently used tools and techniques are key risk indicators, self-assessments, and scenario analysis.  A general framework widely used among banks is COBIT developed by ISACA. COBIT was used effectively for managing risk within the technology teams to ensure that appropriate IT governance and IT assurance processes were utilized throughout the bank. A case study in included with this post to demonstrated the steps and benefit obtained from the implementation.

Bank Case Study1.pdf Download this file