The unprecedented levels of business complexities, ever-changing geopolitical scenarios, latest regulations and laws, and the increasing stakeholder demands have made managing enterprise risks a crucial priority among CEOs, CFOs, and other members of any company’s C-Suite.

Over the last years, investors have made it a point to look into companies’ risk management policies and procedures. In most industries, boards of directors are expected to review the competence of their respective organizations’ risk management processes. Most organizations have an audit and risk committees who oversee risk management systems in organizations.

The significance of enterprise risk management is palpable. Risks that have a huge impact on corporations today have become virtually manageable and foreseeable. Directors and senior executives have every reason to use enterprise risk management as a handle in ensuring that unnecessary losses are managed.

Enterprise Risk Management (ERM), in a nutshell, can be viewed as a way of aggregating, managing, and reporting on the all the possible risks a company faces, making feasible the consolidation of all risk information.

Most corporations adhere to the standard ERM definition outlined by the United States’ Committee of Sponsoring Organizations of Treadway Commission (COSO). In Enterprise Risk Management—Integrated Framework (2004), COSO defines ERM as a process designed to:

1. Identify potential events that may affect the organization.

2. Manage risk within the organization’s risk appetite.

3. Provide reasonable assurance regarding the achievement of the organization’s objectives.

The COSO definition outlines eight interrelated components of enterprise risk—internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring.

Of course, risk management is not a linear process wherein one component is affected by what comes before it. It is multidirectional and iterative, which means any component can influence the other.

Of late, ISO 31000:2009, Risk Management: Principles and Guidelines has become a well-accepted industry standard. Simple in its approach and designed to supplement existing management systems, the standard has made the appreciation and uptake relatively simpler for companies. It provides principles, frameworks, and a process for managing risk. Any organization, regardless of size, sector, and activities will do well to make use of ISO 31000 to increase chances of attaining objectives, determining organization opportunities and threats, and effectively allocate and use resources for risk treatment.

The 2015 Report on the Current State of Enterprise Risk Management: Update on Trends and Opportunities by the American Institute of CPAs which is based on survey responses from 1,093 business executives from a number of industries and different types and sizes of organizations, provides detailed insights about the state of maturity of their organization’s ERM practices. The report highlights that there appears to be a disconnect between the recognition of today’s high-risk business environment and organizations’ decision to invest in ERM.

While 59 percent of companies believe that the volume and complexity of risks have extensively changed in the last five years, only 25 percent of these companies feel they have a complete ERM process in place.

According to the same report, despite 68 percent of executives stating that calls for increased senior executive involvement in risk oversight, only 23 percent describe their organization’s level of ERM maturity as “mature” or “robust.”

These facts point out that organizations appear to be struggling to integrate their risk oversight with their strategy development and execution. ERM must begin to be viewed as a top priority strategic tool that provides a unique competitive advantage.

The need to revisit your company’s ERM culture and improve it through an advanced ERM training is only pertinent.

Published by the Economic Intelligence Unit, here are 10 practical lessons learned from the current financial crisis that companies can use to help address perceived weaknesses in risk identification, assessment, and management:

1. Risk management must be given greater authority.

Risk managers’ opinions and concerns take a back seat when the opportunity for profit arise.

To be relevant and effective, risk managers need to be an independent function with sufficient authority to efficiently challenge risk-takers.

Companies should be wary if risk professionals are given due authority in the organizations. There should be balance between the authority for risk management and the profit-making objective.

2. Senior executives must lead risk management from the top.

Risk management can only gain sufficient attention in an organization if senior-level managers lead and support it.

Risk management should be the role of senior management, elevating the authority of risk management and allowing this risk to focus on filtering through the organization to build a pervasive risk culture.

3. Institutions must review the level of risk expertise in their organization.

Organizations must ensure that sufficient risk expertise is in place. Of course, it would make sense to use the right ERM framework suited to the industry you are in. Experts must be equipped with the tools and information to comprehend and cover the company’s risk appetite and positions. Also, there should be channels of communication to ensure that risk information is passed to the right individuals.

4. Model output with human judgment.

There is a recent trend for quantitative techniques replacing human judgment in measuring risk.

Quantitative models, no matter how sophisticated, are always limited by the quality of data, oftentimes magnifying small input errors. Thus, people need to remain responsible for making risk management decisions.

5. Stress testing and scenario planning can help executives respond properly to events.

Stress testing and scenario planning—always important tools in risk management are regaining importance as some of the problems with quantitative models have come to light.

These techniques can help companies understand the impact of severe but plausible scenarios and prepare for highly unexpected events.

To be effective, stress testing should be integrated with a company’s overall risk management processes and have sufficient involvement from the board and senior management.

6. Incentive systems must be constructed to reward long-term stability.

Incentives have to be carefully designed so that they do not encourage pursuing short-term profit without regard for long-term costs. This is a key area for reform, as there has been a mismatch between short-term incentive structures and long-term risk exposures.

7. Risk factors should be consolidated across all the institution’s operations.

Companies need to look at risk on a firm-wide level to be able to identify and aggregate risks, as examining risks in silos can make it difficult to understand the interaction among risks.

There should be a risk culture where risk is a concern for all employees, and there’s a clear and frequent communication across organizational boundaries.

8. Companies should ensure appropriate reliance on data from external providers.

There has been a criticism of credit rating agencies for their risk pricing models and their delay in downgrading securities.

Many question credit rating agencies due to the inherent conflict of interest that exists, since they are paid by issuers to rate their securities. These concerns highlight the need for companies to address overdependence on credit ratings and to supplement ratings with their own continuously updated analyses.

Companies should consider the extent to which they rely on external sources of risk information and their understanding of any limitations.

9. A careful balance must be struck between centralization and decentralization of risk.

There should be a central, independent risk function to set risk appetite, implement and monitor controls, provide oversight of a firm’s risk position, and aggregate risk information.

There should also be risk management embedded in regional or business units for each profit center to take ownership of its own risks, and so that a risk culture is instilled throughout the organization.

10. Risk management systems should be adaptive rather than static.

Assumptions about risk should be questioned and updated, feeding observations from the real world back into the system on a regular basis. This enables risk management to correct inherent weaknesses and recognize and respond to changing business conditions.

By regularly monitoring changes, a company can adjust their overall risk appetite and risk limits for individual lines of businesses appropriately.

The key to taking ERM efforts to the next level lies on the ability of risk professionals in sharing and comparing practices with other advanced ERM professionals. APEX Global Learning offers a two-day Enterprise Risk Management training – a detailed workshop for chief risk officers, risk management team leaders and members from organizations with advanced ERM effort for gaining new strategies for new benchmarking of ERM techniques with.

calendar_popup

Calendar

No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
Dec 18 - Oct 19Agile SCRUM PractitionerManila, Philippines
Jan 22 - Jan 23Enterprise Risk ManagementManila, Philippines
Jan 25 - Jan 26Agile SCRUM PractitionerManila, Philippines
Jan 29 - Jan 31OMCA™ - Online Marketing Certified AssociateManila, Philippines
Jan 30 - Jan 31MS Excel Advanced Features (2010/2013)Manila, Philippines
Feb 5 - Feb 7Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Feb 7 - Feb 8ITIL Foundation (2011)Manila, Philippines
Feb 12 - Feb 15Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Feb 13 - Feb 14ISMS (Information Security Management Systems) PractitionerManila, Philippines
Feb 19 - Feb 24Combined Lead Auditor (CLA) Training - ISMS, BCMManila, Philippines
Feb 20 - Feb 21DevOps FoundationManila, Philippines
Feb 22 - Feb 23CompTIA Cloud EssentialsManila, Philippines
Feb 26 - Feb 28Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Feb 26 - Feb 27ITIL Foundation (2011)Manila, Philippines
Feb 28 - Mar 2Certified Data Center Specialist (CDCS)® TrainingManila, Philippines
Mar 1 - Mar 2BIA - Business Intelligence and Analytics FoundationManila, Philippines
Mar 5 - Mar 7Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Mar 5 - Mar 7OMCA™ - Online Marketing Certified AssociateManila, Philippines
Mar 6 - Mar 8CQL - Certified Quality LeaderManila, Philippines
Mar 8 - Mar 9DevOps FoundationManila, Philippines
Mar 12 - Mar 13COBIT 5 FoundationManila, Philippines
Mar 12 - Mar 13Complaints Management - Turning Complaints to ComplimentsManila, Philippines
Mar 14 - Mar 16CPRE - Certified Professional for Requirements EngineeringManila, Philippines
Mar 19 - Mar 22Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Mar 19 - Mar 20Big Data FoundationManila, Philippines
Mar 22 - Mar 23CCP - Crisis Communication Planner (ICOR Certified) TrainingManila, Philippines
Mar 22 - Mar 26Accelerated Six Sigma Green BeltManila, Philippines
Mar 31 - Mar 31MS Excel Advanced Features (2010/2013)Manila, Philippines
Apr 10 - Apr 11Business Continuity Management PractitionerCebu City, Philippines
Apr 10 - Apr 11MS Projects 74-343Manila, Philippines
Apr 11 - Apr 12BIA - Business Intelligence and Analytics AdvancedManila, Philippines
Apr 19 - Apr 20DevOps FoundationManila, Philippines
Apr 23 - Apr 2Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Apr 26 - Apr 27ITIL Foundation (2011)Manila, Philippines
Apr 26 - Apr 2Agile SCRUM PractitionerManila, Philippines
May 9 - May 11BCM Lead Implementer - ISO 22301 (ICOR Certified)Manila, Philippines
May 10 - May 11Intro to Project ManagementCebu City, Philippines
May 17 - May 18ITIL Foundation (2011)Manila, Philippines
May 17 - May 18MS Excel Advanced Features (2010/2013)Manila, Philippines
May 24 - May 25Certified Data Center Professional (CDCP)® TrainingManila, Philippines
May 24 - May 25Enterprise Risk ManagementManila, Philippines
May 24 - May 2DevOps FoundationManila, Philippines
May 27 - Jun 1Certified Data Center Expert (CDCE)® TrainingManila, Philippines
May 30 - May 31Big Data FoundationManila, Philippines
Jun 14 - Jun 15MS Excel Advanced Features (2010/2013)Manila, Philippines
Jun 14 - Jun 15DevOps FoundationManila, Philippines
Jun 19 - Jun 22Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Jun 20 - Jun 22CPRE - Certified Professional for Requirements EngineeringManila, Philippines
Jun 21 - Jun 22CCP - Crisis Communication Planner (ICOR Certified) TrainingManila, Philippines
Jun 21 - Jun 22CompTIA Cloud EssentialsManila, Philippines
Jun 25 - Jun 26ITIL Foundation (2011)Manila, Philippines
Jul 11 - Jul 12PRINCE2 FoundationManila, Philippines
Jul 12 - Jul 13Business Continuity Management PractitionerCebu City, Philippines
Jul 12 - Jul 13BIA - Business Intelligence and Analytics AdvancedManila, Philippines
Jul 19 - Jul 20ITIL Foundation (2011)Manila, Philippines
Jul 19 - Jul 20ISMS (Information Security Management Systems) PractitionerManila, Philippines
Jul 24 - Jul 25Intro to Project ManagementCebu City, Philippines
Jul 30 - Jul 31DevOps FoundationManila, Philippines
Aug 9 - Aug 10Business Continuity Management PractitionerCebu City, Philippines
Aug 16 - Aug 17Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Aug 16 - Aug 17MS Excel Advanced Features (2010/2013)Manila, Philippines
Aug 20 - Aug 21Agile SCRUM PractitionerManila, Philippines
Aug 23 - Aug 24ITIL Foundation (2011)Manila, Philippines
Aug 28 - Aug 31Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Aug 29 - Aug 31Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Aug 29 - Aug 3Big Data FoundationManila, Philippines
Aug 30 - Aug 31DevOps FoundationManila, Philippines
Sep 1 - Sep 14MS Excel Advanced Features (2010/2013)Manila, Philippines
Sep 5 - Sep 7Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Sep 10 - Sep 15Combined Lead Auditor (CLA) Training - ISMS, BCMManila, Philippines
Sep 17 - Sep 18MS Excel Advanced Features (2010/2013)Manila, Philippines
Sep 20 - Sep 21ITIL Foundation (2011)Manila, Philippines
Sep 20 - Sep 21Enterprise Risk ManagementManila, Philippines
Sep 24 - Sep 27Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Sep 24 - Sep 25DevOps FoundationManila, Philippines
Sep 27 - Sep 28CompTIA Cloud EssentialsManila, Philippines
Oct 15 - Oct 17Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Oct 18 - Oct 19BIA - Business Intelligence and Analytics FoundationManila, Philippines
Oct 18 - Oct 19DevOps FoundationManila, Philippines
Oct 18 - Oct 19Intro to Project ManagementCebu City, Philippines
Oct 25 - Oct 2MS Projects 74-343Manila, Philippines
Oct 29 - Oct 30ITIL Foundation (2011)Manila, Philippines
Nov 8 - Nov 9MS Excel Advanced Features (2010/2013)Manila, Philippines
Nov 12 - Nov 13DevOps FoundationManila, Philippines
Nov 13 - Nov 15BCM Lead Implementer - ISO 22301 (ICOR Certified)Manila, Philippines
Nov 15 - Nov 16MS Excel Advanced Features (2010/2013)Manila, Philippines
Nov 20 - Nov 23Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Nov 21 - Nov 23Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Nov 21 - Nov 23CPRE - Certified Professional for Requirements EngineeringManila, Philippines
Nov 22 - Nov 23ITIL Foundation (2011)Manila, Philippines
Nov 27 - Nov 28Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Nov 27 - Nov 28Enterprise Risk ManagementManila, Philippines
Nov 28 - Nov 29Big Data FoundationManila, Philippines
Dec 6 - Dec 7ITIL Foundation (2011)Manila, Philippines
Dec 6 - Dec 7CompTIA Cloud EssentialsManila, Philippines
Dec 10 - Dec 11Business Continuity Management PractitionerCebu City, Philippines
Dec 10 - Dec 11Intro to Project ManagementCebu City, Philippines
Dec 11 - Dec 12MS Excel Advanced Features (2010/2013)Manila, Philippines
Dec 13 - Dec 14DevOps FoundationManila, Philippines
x

Calendar

No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
Dec 18 - Oct 19Agile SCRUM PractitionerManila, Philippines
Jan 22 - Jan 23Enterprise Risk ManagementManila, Philippines
Jan 25 - Jan 26Agile SCRUM PractitionerManila, Philippines
Jan 29 - Jan 31OMCA™ - Online Marketing Certified AssociateManila, Philippines
Jan 30 - Jan 31MS Excel Advanced Features (2010/2013)Manila, Philippines
Feb 5 - Feb 7Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Feb 7 - Feb 8ITIL Foundation (2011)Manila, Philippines
Feb 12 - Feb 15Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Feb 13 - Feb 14ISMS (Information Security Management Systems) PractitionerManila, Philippines
Feb 19 - Feb 24Combined Lead Auditor (CLA) Training - ISMS, BCMManila, Philippines
Feb 20 - Feb 21DevOps FoundationManila, Philippines
Feb 22 - Feb 23CompTIA Cloud EssentialsManila, Philippines
Feb 26 - Feb 28Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Feb 26 - Feb 27ITIL Foundation (2011)Manila, Philippines
Feb 28 - Mar 2Certified Data Center Specialist (CDCS)® TrainingManila, Philippines
Mar 1 - Mar 2BIA - Business Intelligence and Analytics FoundationManila, Philippines
Mar 5 - Mar 7Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Mar 5 - Mar 7OMCA™ - Online Marketing Certified AssociateManila, Philippines
Mar 6 - Mar 8CQL - Certified Quality LeaderManila, Philippines
Mar 8 - Mar 9DevOps FoundationManila, Philippines
Mar 12 - Mar 13COBIT 5 FoundationManila, Philippines
Mar 12 - Mar 13Complaints Management - Turning Complaints to ComplimentsManila, Philippines
Mar 14 - Mar 16CPRE - Certified Professional for Requirements EngineeringManila, Philippines
Mar 19 - Mar 22Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Mar 19 - Mar 20Big Data FoundationManila, Philippines
Mar 22 - Mar 23CCP - Crisis Communication Planner (ICOR Certified) TrainingManila, Philippines
Mar 22 - Mar 26Accelerated Six Sigma Green BeltManila, Philippines
Mar 31 - Mar 31MS Excel Advanced Features (2010/2013)Manila, Philippines
Apr 10 - Apr 11Business Continuity Management PractitionerCebu City, Philippines
Apr 10 - Apr 11MS Projects 74-343Manila, Philippines
Apr 11 - Apr 12BIA - Business Intelligence and Analytics AdvancedManila, Philippines
Apr 19 - Apr 20DevOps FoundationManila, Philippines
Apr 23 - Apr 2Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Apr 26 - Apr 27ITIL Foundation (2011)Manila, Philippines
Apr 26 - Apr 2Agile SCRUM PractitionerManila, Philippines
May 9 - May 11BCM Lead Implementer - ISO 22301 (ICOR Certified)Manila, Philippines
May 10 - May 11Intro to Project ManagementCebu City, Philippines
May 17 - May 18ITIL Foundation (2011)Manila, Philippines
May 17 - May 18MS Excel Advanced Features (2010/2013)Manila, Philippines
May 24 - May 25Certified Data Center Professional (CDCP)® TrainingManila, Philippines
May 24 - May 25Enterprise Risk ManagementManila, Philippines
May 24 - May 2DevOps FoundationManila, Philippines
May 27 - Jun 1Certified Data Center Expert (CDCE)® TrainingManila, Philippines
May 30 - May 31Big Data FoundationManila, Philippines
Jun 14 - Jun 15MS Excel Advanced Features (2010/2013)Manila, Philippines
Jun 14 - Jun 15DevOps FoundationManila, Philippines
Jun 19 - Jun 22Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Jun 20 - Jun 22CPRE - Certified Professional for Requirements EngineeringManila, Philippines
Jun 21 - Jun 22CCP - Crisis Communication Planner (ICOR Certified) TrainingManila, Philippines
Jun 21 - Jun 22CompTIA Cloud EssentialsManila, Philippines
Jun 25 - Jun 26ITIL Foundation (2011)Manila, Philippines
Jul 11 - Jul 12PRINCE2 FoundationManila, Philippines
Jul 12 - Jul 13Business Continuity Management PractitionerCebu City, Philippines
Jul 12 - Jul 13BIA - Business Intelligence and Analytics AdvancedManila, Philippines
Jul 19 - Jul 20ITIL Foundation (2011)Manila, Philippines
Jul 19 - Jul 20ISMS (Information Security Management Systems) PractitionerManila, Philippines
Jul 24 - Jul 25Intro to Project ManagementCebu City, Philippines
Jul 30 - Jul 31DevOps FoundationManila, Philippines
Aug 9 - Aug 10Business Continuity Management PractitionerCebu City, Philippines
Aug 16 - Aug 17Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Aug 16 - Aug 17MS Excel Advanced Features (2010/2013)Manila, Philippines
Aug 20 - Aug 21Agile SCRUM PractitionerManila, Philippines
Aug 23 - Aug 24ITIL Foundation (2011)Manila, Philippines
Aug 28 - Aug 31Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Aug 29 - Aug 31Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Aug 29 - Aug 3Big Data FoundationManila, Philippines
Aug 30 - Aug 31DevOps FoundationManila, Philippines
Sep 1 - Sep 14MS Excel Advanced Features (2010/2013)Manila, Philippines
Sep 5 - Sep 7Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Sep 10 - Sep 15Combined Lead Auditor (CLA) Training - ISMS, BCMManila, Philippines
Sep 17 - Sep 18MS Excel Advanced Features (2010/2013)Manila, Philippines
Sep 20 - Sep 21ITIL Foundation (2011)Manila, Philippines
Sep 20 - Sep 21Enterprise Risk ManagementManila, Philippines
Sep 24 - Sep 27Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Sep 24 - Sep 25DevOps FoundationManila, Philippines
Sep 27 - Sep 28CompTIA Cloud EssentialsManila, Philippines
Oct 15 - Oct 17Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Oct 18 - Oct 19BIA - Business Intelligence and Analytics FoundationManila, Philippines
Oct 18 - Oct 19DevOps FoundationManila, Philippines
Oct 18 - Oct 19Intro to Project ManagementCebu City, Philippines
Oct 25 - Oct 2MS Projects 74-343Manila, Philippines
Oct 29 - Oct 30ITIL Foundation (2011)Manila, Philippines
Nov 8 - Nov 9MS Excel Advanced Features (2010/2013)Manila, Philippines
Nov 12 - Nov 13DevOps FoundationManila, Philippines
Nov 13 - Nov 15BCM Lead Implementer - ISO 22301 (ICOR Certified)Manila, Philippines
Nov 15 - Nov 16MS Excel Advanced Features (2010/2013)Manila, Philippines
Nov 20 - Nov 23Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Nov 21 - Nov 23Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Nov 21 - Nov 23CPRE - Certified Professional for Requirements EngineeringManila, Philippines
Nov 22 - Nov 23ITIL Foundation (2011)Manila, Philippines
Nov 27 - Nov 28Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Nov 27 - Nov 28Enterprise Risk ManagementManila, Philippines
Nov 28 - Nov 29Big Data FoundationManila, Philippines
Dec 6 - Dec 7ITIL Foundation (2011)Manila, Philippines
Dec 6 - Dec 7CompTIA Cloud EssentialsManila, Philippines
Dec 10 - Dec 11Business Continuity Management PractitionerCebu City, Philippines
Dec 10 - Dec 11Intro to Project ManagementCebu City, Philippines
Dec 11 - Dec 12MS Excel Advanced Features (2010/2013)Manila, Philippines
Dec 13 - Dec 14DevOps FoundationManila, Philippines
ENROLL NOW








REQUEST A CUSTOM QUOTE








Request a callback
REQUEST FOR CALLBACK