With new regulatory requirements and a not-so stable economy, risk management technology is vital for any firm's IT strategy. And with the ever-increasing interest in risk comes the prospect of enterprise-wide risk management (ERM). Recently, the term seems to be thrown around left and right, but what does it mean and how are firms accomplishing this enterprise-wide look at risk? ERisk's latest online iConference took an in depth look at enterprise-wide risk management. James Lam, founder and vice chairman of eRisk used the forum to discuss how to build a business case for ERM, establishing a long-term vision and executing the vision and key requirements.

Lam explained that key risk management trends are driving ERM with benefits hard to ignore. He pointed out that some benefits of ERM include broad risk awareness across the enterprise, aligning risk profiles and strategy, assuring regulatory compliance and improving shareholder value. As for the future of ERM, Lam described three key control functions for risk integration across the enterprise: an integrated risk assessment, integrated risk strategies and integrated risk reporting. He also advised that financial firms should be able to create an ERM framework in six months or less to bring together credit risk, market risk and operational risk into a single risk view across the enterprise.

- For more information on ERM and the eRisk iConference log onto www.erisk.com.

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