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.
01Introduction to ERM
Basic principles of ERM, key concepts & framework for risk management
Start now02External Risk Frameworks
Regulatory risk frameworks & approaches by credit rating agencies
Start now03The ERM Process
Stakeholders, risk appetite & risk management process
Start now04Risk Classification
Different concepts of risk & risks faced by organisations
Start now05Risk Measurement
Definition & calculation of various risk measures
Start now06Introduction to Risk Modelling
Quantification of risk, measures of correlation & modelling approaches
Start now07Quantitative Analysis of Financial Data
Analysis of data, and the selection & use of copulas
Start now08Further Risk Modelling
Tail risk & extreme value theory
Start now09Analysis of Different Types of Risk
Assessment of market, credit & other risks
Start now10Risk Optimisation and Responses to Risk
Optimise relative to an objective, & the various responses to risk
Start now11Risk Mitigation
How to manage market, credit and other risks
Start now12Capital Management
Economic value & economic capital
Start now