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 principles examinations, SP9, set by the Institute and Faculty of Actuaries. I wrote the book, “Financial Enterprise Risk Management” 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.