Enterprise Risk Management
Enterprise risk management – or ERM – is the study of how to manage risk for an enterprise as a whole. This means understanding not only the range of risks that an institution faces, but how they inter-react. It also implies the use of a framework within which risk is managed, as well as certain structures an processes.
ERM forms the basis for one of the specialist technical examinations, ST9, set by the Institute and Faculty of Actuaries. I wrote the book, “Financial Enterprise Risk Management” [amazon link to 2nd ed] on which much of the examination is based. The book contains questions at the end of each chapter, but I have included some additional tests here to help students prepare for their examinations.
Basic principles of ERM, key concepts & framework for risk managementStart now
Regulatory risk frameworks & approaches by credit rating agenciesStart now
Quantification of risk, measures of correlation & modelling approachesStart now
Analysis of data, and the selection & use of copulasStart now
Optimise relative to an objective, & the various responses to riskStart now