How to Create a Successful ERM Program
By: Bill Hord, Vice President of Enterprise Risk Management Services for Quantivate.
Credit unions seek to accomplish their strategic objectives within the framework of their mission. Once management has determined their strategic objectives, they set about creating strategies to achieve their objectives. Having a solid ERM framework applied in the strategy-setting process allows the credit union to identify and mitigate or accept the risks in pursuit of their objectives.
Utilizing an ERM framework helps the credit union provide reasonable assurance to the board of directors and management related to the achievement of the credit unionâs objectives. This assurance is based upon the understanding of risks related to the objectives, and furthermore, that the risks have been reduced to acceptable levels.
Proper use of ERM will assist the credit union by also providing better governance and management processes that ultimately lead to informed risk-based decisions. These decisions and the internal controls in place to help mitigate the risks will reduce the risk associated with achieving the credit unionâs objectives and help ensure they are within the stated risk appetite.
In order to create a successful ERM program you should:
- Determine and utilize the proper risk framework for your credit union
- Define and prioritize significant risks and identify the weakest critical control
- Measure risk and controls
- Complete a risk assessment and build a risk committee
Listen to the full podcast
, âHow to Create a Successful ERM Programâ, for and in-depth discussion about how your credit union can strategically create an ERM program that is set up for success from the very first day of implementation.
During this 25-minute podcast, industry expert Bill Hord, Vice President of Enterprise Risk Management Services for Quantivate, joins Devon Lyon, Director of Education for NAFCU, and breaks down the steps your credit union should take to properly determine, assess, and prepare for risks when evaluating the best ERM program for your organization.
If you missed Part 1- Getting Down to the ERM Basics, you can listen to the  full podcast here.
 Quantivate is the NAFCU Services Preferred Partner for Vendor and Contract Management Software. More educational resources are available at www.nafcu.org/quantivate.