Enterprise Risk Management Comprehensive Framework
ERM Assessment Program

ERM Assessment Program, utilizing PEXA® Decision Support Platform , assess the current ERM standing of the organization. The program consists of a check list with various inquiries, which are easily answered as either being present or absent in the current ERM practice.

  • From the outcome of the ERM Assessment Program, you can find the weakness of the organization’s ERM framework. You can invest time and effort to overcome the weakness and to enhance the ERM framework.
  • The ERM Assessment Program can incorporate various categories and items suitable to the environment, situation and status of the particular organization, and can be easily modified.
  • The ERM Assessment Program is a useful tool for advisors, CRO, CFO, internal auditors, senior executives, business owners, boards of directors, and key decision makers.
Sample Check list[excerpt]

1 Senior management and the board of directors have a clear understanding of the objectives of ERM relative to traditional approaches to risk management (eg, insurance, credit risk management, etc.).
2 The CEO embraces the need and provides adequate endorsement of an enterprise-wide approach to risk oversight that seeks to obtain a top-down view of major risk exposures.
3 The board of directors is supportive of management’s efforts to implement an enterprise-wide approach to risk oversight.
4 Senior management views the organization’s efforts to obtain an enterprise perspective on the collection of risks as an important strategic tool for the organization.
5 The organization has explicitly assigned enterprise-wide risk management authority and responsibility to a senior executive or senior management committee (e.g. identified an interna "risk champion" or "risk management leader").
6 The senior executive with explicit responsibilities for enterprise-wide risk management leadership is a direct report of the CEO (or, a senior executive risk committee is used to provide that leadership and the committee chair reports to the CEO).
7 Enterprise-wide risk management principles and guidelines have been identified and defined by executive management and formally communicated to all business units.
8 Senior management has effective risk management capabilities and competencies.
9 Senior management’s compensation is linked to and dependent upon key risk management metrics.
10 Senior management has formally presented an overview to the board of directors about the organization’s processes that represent its approach to ERM.