This is a two-day interactive workshop that covers the essentials of enterprise risk management and broadens the perspective of attendees in order for them to begin the process in their own organizations.

Workshop credit towards the RIMS Fellow designation is being given for participation in this workshop by RIMS. Individuals may attend the workshop without working toward the designation.

DAY ONE
Enterprise Risk Management Overview
This day provides an overview of ERM including a framework for beginning the process in your organization. It shows multiple models that can be utilized by your organization to develop ERM. At the same time, the ERM process fits all industries, all organizations (public or private, profit or not for profit). You will learn that some strategies and tactics are industry and/or firm specific. Finally, this program will give you a five-step ERM model that will allow you to introduce a framework for the ERM process in your organization.

TOPICS

ERM Risk Concepts. What is ERM? Why do we need ERM? ERM as aprocess. ERM development. ERM scope. Strategic ERM definitions. Other ERM definitions. Agreement on ERM. Interested parties to ERM. Five-step ERM model.

Expanding Risk Management Traditional risk perspective. Expanded risk perspective. Systematic approaches. Risk financing and control. Risk with severity. Risk with frequency. ERM risk mapping. Simple risk maps. ERM integrated system. ERM risk assessment.

Objectives of ERM. Role of goals. Role of benchmarking. ERM and a better understanding of risk. ERM and competitive advantage. ERM and catastrophic risks. ERM and better regulatory compliance. Cash flow as a goal. Securities investments as a goal. Financial goals. Formal ERM programs.

Risk Measurement. Risk modeling. Descriptive Models. Predictive Models. Earnings at risk. Earnings ERM model. Value at risk. Value ERM model. Risk probability. Risk assessment. Metric impact.

DAY TWO
ERM Risks, Benefits and Obstacles
This day covered ERM in a framework of expected losses and catastrophes. It introduces a bottom-up risk identification that can be developed into a broad risk management program. Discussions cover both the benefits of and obstacles to introducing a modern ERM program. Attendees examine the role of chief risk officers and risk management committees and address the role of brokers and consultants. The day concludes with suggestions for developing an internal ERM guide that takes a risk philosophy and implements it.

TOPICS

Techniques of Risk Identification. Critical risks. Inductive risks. Deductive risks. Techniques to identify risks. Centralized risk identification. Decentralized risk identification. Risk identification processes. Expected business risk (EBR). Catastrophic occurrence risks (COR). Distinguishing EBRs and CORs.

Breadth of ERM Risks. Traditional and ERM Risks. Evolution to ERM. Financing Sources and Capital Adequacy Risks. Credit and Investment Risk. Financial Concentration Risk. Market Speculation Risk. Operating and Concentration Risks. Political and Environmental Risks. Customer and Client Risks. Public Image Risk.

Benefits and Obstacles Overview. Benefits to adopting ERM. Marketing, exposure operating, and financial benefits. ERM mitigation steps. Internal and external obstacles to ERM. Examples of ERM obstacles. Overcoming obstacles to ERM.

Survey of ERM Benefits and Obstacles. Scope of ERM risk. Alignment of ERM with strategies. Evolution of the scope and alignment with strategies. Integration of functions. Satisfaction with current ERM benefits. Reported benefits. Quantifying benefits. Barriers to implementing ERM. Minimizing ERM barriers.

The course covers the essentials of the emerging enterprise risk management (ERM) approach to managing organizational exposures in a single coordinated framework. Attendees will learn the foundation concepts that expand traditional risk management into an ERM structure. Topics include ERM objectives, risk identification and measurement, and the breadth of risks that are managed from an ERM perspective. The course also examines ERM benefits, obstacles, and best practices.

This workshop will benefit risk management professionals and others who want to update their knowledge on current thinking in risk management.

Harvey Lermack
Harvey B. Lermack has over 20 years of experience in risk management, consulting and training. He was the Training Director at a large freight railroad in Philadelphia, where he spearheaded work force training in risk management, environmental health and safety, behavioral safety, and technical training. He was part of a team that introduced ERM into the organization that resulted in contributions to the bottom line.

He has served on the Education Committee of the Risk and Insurance Management Society, has been a Board Member and Regional Director of the National Environmental Training Association, as well as a member of the American Society For Training and Development.

He currently has his own consulting firm in Cherry Hill, New Jersey specializing in services in risk management, behavioral safety, change management, and leadership. He works with companies to help them move the ERM process forward. He received Lakewood Publications 1997 award as “Outstanding Performer in Training. He received his MBA from Widener University.