Thursday, October 22, 2009

Learn Enterprise Risk Management from S&P

PRMIA, an organization for "risk management professionals" (whatever that means these days) generates some revenue by organizing courses. Among others they offer a course on Enterprise Risk Management (ERM). This type of course is meant to address risk management policies and practices across an organization (supposedly combining market, credit, and operational risks). James Lam (James Lam & Associates), who calls himself "the first ever chief risk officer”, is teaching the next ERM course for them. But there is more to this course:

PRMIA: Joining James Lam in discussing best practices in designing and implementing an ERM program will be Laurence Hazell, a director at Standard and Poor's in New York. Mr. Hazell, recognized in 2008 by Directorship Magazine as one of the 100 most influential people in Corporate Governance, will speak on Standard and Poor's ERM criteria and how they evaluate a company's ERM program as part of their rating process.

Wait, S&P will actually teach Enterprise Risk Management?

 Establishing a strong business case for ERM, and overcoming organizational barriers
 Developing an practical ERM framework and implementation plan
 Demonstrating tangible benefits from ERM adoption
 Implementing and integrating ERM into strategic and business decisions
 Establishing effective risk management policies and explicit risk tolerance levels
 Developing effective dashboard reporting for senior management and the board
 Creating an effective feedback loop for ERM performance

They have a great deal to contribute. After all S&P has been good at overcoming "organizational barriers" - when need be.

source: CNBC

Yet at other times organizational barriers persisted at S&P, as one could get a different rating depending on which group one approaches or how one describes the product being rated. And of course you too can learn how to deploy ERM to manage conflicts within your firm the way S&P did. You get both Mr. Lam and Mr. Hazell for a whole day (maybe) for only $1,200 per participant.

hat tip Ed
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