Getting Down to the ERM Basics
By: Bill Hord, Vice President of Enterprise Risk Management Services for Quantivate.
Most people in the credit union community likely have a basic understanding of Enterprise Risk Management (ERM). But why is it important to the success of your credit union? And more importantly, how do you get started?
Top three things to know about Enterprise Risk Management:
- ERM helps credit unions develop strategies to identify the risks and opportunities impacting their strategic objectives.
- ERM enhances risk response decisions and reduces operational losses by identifying potential risks ahead of time.
- ERM helps credit unions mitigate those risks to provide reasonable assurance to the board of directors and management related to achieving their strategic objectives.
- ERM programs help executive management make better decisions on how risk should be managed and builds confidence with your board and auditors. Having an enhanced risk identification strategy allows your credit union to implement preemptive and proactive practices.
- ERM helps credit unions with the alignment of risk appetite and strategy to improve the deployment of capital.
- A successful ERM program ultimately decreases the number of risk incidents, reduces cost of capital, and increases overall risk awareness at your credit union.
For more on Getting Down to the ERM Basics, join industry expert Bill Hord, Vice President of Enterprise Risk Management Services for Quantivate, for an insightful podcast. He sits down with Devon Lyon, Director of Education for NAFCU, for a high-level overview of enterprise risk management. Bill covers the ins and outs of what ERM is, what success looks like, and how to manage the ERM process. Listen to the  full podcast here.