Enterprise Risk Management

Here at Griffin & Furman LLC, we are always looking for new ways to improve and amplify our support services. Today’s Credit Unions are constantly facing complex regulatory scrutiny and compliance standards—and often are juggling risk management and assessment as well. Asset liability management, vendor management, business continuity planning, auditing, strategy planning, and project management are just a few of the things that Credit Unions tackle during the day-to-day.

Credit Unions need a specialized CPA firm to rely on for expert guidance and support services. That’s why we are expanding our menu of services to include Enterprise Risk Management—a multi-step, dynamic program designed to identify and manage potential organizational risks and opportunities.

What Is Enterprise Risk Management (ERM)?

ERM assesses and aligns risk, both internal and external, to ensure the success of the credit union’s objectives and financial stability. This systematic process identifies potential events that could cause damage in the future—not just in the present. ERM, rather, is a strategic tool—not just a compliance tool.

ERM is not a risk audit; it does not eliminate risk. However, ERM is the business of risk-intelligent decisions that align with the Credit Union’s visions—resulting in an ongoing, specialized approach to specific needs.

Benefits of ERM

● Provides a comprehensive view of organizational risk
● Develops the conversation and Improves communication around risk management
● Establishes a philosophy regarding risk and risk culture
● Identifies and mitigates potential risks, resulting in fewer surprises and losses

You Can Expect…

1. An initial evaluation to jointly assess risk management processes, evaluate effectiveness, and identify necessary improvements.
2. An action plan to develop strategies to implement the Credit Union’s vision. This includes timeliness and the delegation of duties to individuals—potentially developing the role of a Risk Officer and Risk Committee.
3. A risk assessment to assess the risk according to the metric set by the NCUA. A risk profile will be developed for each metric, including:

○ Strategic risk
○ Transaction risk
○ Credit risk
○ Interest rate risk
○ Liquidity risk
○ Compliance risk
○ Reputation risk

4. Reporting that merges both risk evaluation and discussion into the process.
5. A routine re-evaluation that is performed periodically. ERM is not a static project, but a routine process that grows and changes with the Credit Union.

Questions? We’re Listening.

The way we approach risk management is not one-size-fits-all. Contact us today to assess your Credit Union’s individualized needs. Find us here.