How ERM Can Improve Treasury Controls
- Topics:
- Enterprise Risk Management
- Tags:
- Business Operations,
- Business Security,
- Enterprise Risk Management,
- ERM,
- Global Treasury News,
- Risks,
- Treasury
- Source:
- Global Treasury News
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Overview: In the context of heightened awareness Enterprise Risk Management (ERM) has become a fashionable concept eagerly promoted by consultancy firms and just as eagerly consumed by management. But what is ERM and what relevance does it have for treasury? Every organisation raises capital and during the course of its venture places that capital at risk in the expectation that it will meet set corporate and business goals. In this current environment of disclosure and focus on the risks enterprises are taking, ERM has become a new buzzword being bandied around as if it were something new and revolutionary. Given the nature of treasury risk, past loss events and current 'best practices' in managing risk, ERM can assist treasury and therefore the organisation as a whole. The article explains the components of ERM : Strategic Business Plans (inc. budgets and goals), Corporate Culture, Procedures, Technology etc. Most treasury departments have most if not all of the controls and components in place. The main focus in achieving ERM should actually be the 'culture' element and therefore the people. Risks are taken by people; controls and risk management exercised by them. All the procedures and systems will not force the employees to manage risk.
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Format: HTML | Date: Jan 2003 | Pages: 1
