What are the Key Elements in an Effective Risk Management Structure?

Mash Risk Television

Ernst & Young
Hank Prybylski, Partner, Financial Services
Runtime: 4:55

Key Takeaways:

1. The “Risk Trinity” refers to:
   • The board and senior management
   • Business units
   • Control groups
2. In an effective risk management structure, the Risk Trinity works together to link risk appetite with the actual level of risk being taken.
3. Risk management communication must be integrated across risk types and business units in order to accurately assess risk in its entirety.
4. Someone in the firm, usually outside day-to-day business operations, should be tasked with identifying things that could go wrong to enhance forward-looking analysis.