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:
- The “Risk Trinity” refers to:
- The board and senior management
- Business units
- Control groups
- In an effective risk management structure, the Risk Trinity works together to link risk appetite with the actual level of risk being taken.
- Risk management communication must be integrated across risk types and business units in order to accurately assess risk in its entirety.
- 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.