Enterprise Risk Management
Risk taking is an everyday event for most
businesses, particularly in the financial services sector.
Risk taking can be viewed as a competitive issue
— some of the most dynamic and
successful businesses are those that tolerate the greatest risks.
For these businesses understanding and managing those risks is an
important aspect of both tactical business management and long-term
business strategy.Financial institutions
are facing ever increasing scrutiny from both shareholders and
regulators to their risk management procedures. The revised
Basel II Capital Accord on capital adequacy for international banks
demands an enterprise view of risk.
To gain maximum advantage from Basel II, the
leading banks will seek to utilise to the maximum the flexibility
inherent in the accord. By taking advantage of the accords
internal ratings approach for credit risk and the internal
measurement approach to operational risk, institutions will have
better control over their risk management. This will lead to
institutions minimising the capital tied up for capital adequacy,
leaving additional capital free for investment.
Knowco provides comprehensive Enterprise Risk
Management advice to types and sizes of business. For more details of Knowco Enterprise Risk
Management consulting services please email us at
knowledge@knowco.co.uk
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