One of our Financial Services clients engaged Jefferson Wells to perform an independent evaluation of its ERM program with a focus on its KRIs and Risk Rating Parameters to determine their robustness and program’s ability to meet the evolving needs of the organization and regulatory expectations.
To provide the client with a benchmark of how they compared to similar companies in size and industry, we conducted a peer analysis targeting key details of the peer companies’ ERM Programs. Our assessment of the KRIs, Risks and Controls warehoused client’s ERM Software Program revealed the metrics were appropriately updated in response to changes in the Client’s policies and procedures and annual ERM self-assessments performed by department heads to validate the Client’s current risk tolerance and risk profile. The Risk Rating parameters developed to calculate the risk scores were comprised of standard levels which are regarded as best practice and are commonly utilized as standard baseline measurements that promoted meaningful comparison of risk scores among peer Clients within the financial services industry.
We concluded that the Client had an established ERM Program embracing the principal components of a complete risk oversight framework which contained appropriate risk measurements and risk tolerances developed in accordance with current regulatory guidance. Our review also identified process improvement opportunities related to the third-party ERM Software Program for management’s consideration.