Enterprise Risk Management

Black Diamond Risk Enterprises (BDRE) works with institutions to design and deliver Enterprise-Wide Risk Management (ERM) solutions.  Over the last decade the concept of ERM has caught the attention of businesses around the world. However, its roots go back some twenty years in the Banking industry, where early incarnations sought to better monitor and control trading room activities of large commercial banks employing increasingly sophisticated trading practices.  We have observed an increasingly rapid evolution of ERM in financial institutions along with an early migration of best practice ERM to non-financial corporations. The growth of ERM has spawned regulatory efforts such as Basel I , II & III, Solvency 1 & II, the Sarbanes-Oxley Act (SOx) in the US, J-SOx in Japan, Anti-Money Laundering and Cyber Risk controls, guidelines and so on.

Non-financial / Corporate risk management is no longer defined by its annual insurance program renewal covering “insurable risks”.  Modern ERM calls for all known risk exposures in an organization to be quantified, evaluated, treated and monitored.  The financial sector is at least a decade ahead of the non-financial sector in developing enterprise-wide risk management capabilities.  Lessons learned there are just beginning to be taken up by the most progressive non-financial corporations in the world.

Black Diamond Risk Enterprises specializes in benchmarking  the quality of an institution’s risk management. It can be “scored” by evaluating the risks underlying each component of the ERM process as to the efficacy of the policies, methodologies and infrastructure (PMI).  The ability to integrate all the components of ERM on both a portfolio and individual transaction basis, while serving customers and satisfying regulators, is a direct function of the quality of an organizations PMI.

sup_erm