FRM 8. Enterprise Risk Management and Future Trends

Learning Objectives

1) Describe Enterprise Risk Management (ERM) and compare an ERM program with a traditional silo-based risk management program.

2) Describe the motivations for a firm to adopt an ERM initiative.

3) Explain best practices for the governance and implementation of an ERM program.

4) Describe risk culture, explain the characteristics of a strong corporate risk culture, and describe challenges to the establishment of a strong risk culture at a firm.

5) Explain the role of scenario analysis in the implementation of an ERM program and describe its advantages and disadvantages.

6) Explain the use of scenario analysis in stress testing programs and capital planning.