Strategic Risk Partners
Strategic Risk Partners (SRP) is an innovative Risk Consulting company that advises global corporations on organizational risk. SRP specializes in operational risk as apposed to market or credit risk. Operational risk factors represent both threats and opportunities that can be identified, valued and prioritized. Vaulation of risk can be assesed in order to view the economic capital associated with it as well as the implications for return on capital or necessary reserves to capital.
Strategic Risk Partners offers a portfolio of risk consulting services that address complex and institutional risk challenges for business organizations. Our solutions and recommended processes for change are individualized to support the unique culture and organizational objectives of each client.
Enterprise Risk Management is a dynamic process
The traditional approach to managing business risks is changing rapidly. Organizations can no longer insure some operational risks and retain the balance of risks, including financial consequences, by allowing the business units to manage risks on an ad hoc basis. Increasingly, all business organizations must standardize and institutionalize the way they manage and respond to risks. A variety of stakeholders are interested in how companies manage risk and are asking for tangible evidence that the process is effective and optimized by some form or Enterprise Risk Management (ERM) operation.
Key stakeholders include:
- Auditors
- Rating agencies
- Regulators
- Lenders
- Suppliers
- Customers
- Board of directors
- JV partners
These trends are occurring at the same time some companies are seeking opportunities to integrate Governance, Risk & Compliance with Business Continuity and Disaster Recovery. Even more opportunity lies ahead if the ERM process can be linked to Capital Budgeting and Strategic Planning. Optimization will occur when we can seek out risk and manage it aggressively to improve revenue, margins, earnings and cash flows.
An effective ERM type process should result in a standardized approach to risk decision making. It should consider both risks and rewards and enable the aggregation and correlation of risks. Finally it should integrate risk management with other management processes.
email this page to a friend
print this page
An ERM culture should be a performance culture – this is business process improvement for risk based decision making. More mature risk management should lead to improved margins.
Phillipa Girling, Nomura Securities at GARP conference February 28, 2008
Poor risk decisions in one business line can affect capital availability in other business lines and corporate
Marta Johnson, Bank of America at GARP conference of February 28, 2008
