Enterprise Risk Management (ERM)
There is no one universally accepted formula of Enterprise Risk Management (ERM) that will fit all institutions. Each bank has a unique mixture of people, customers, products, locations, economies, and capital. However, there is a common theme. The board and bank management need to be able to identify, measure, monitor, and control risks encountered in their institution; both on a current basis and prospective basis.
Risks come in many varieties, including: credit risk, compliance risk, liquidity risk, market risk, operational risk, model risk, capital risk, legal risk, reputational risk.
For banks today, an evaluation of the quantity and quality of their risks is essential and a better understanding of the aggregate risk their institution has at any one time has become imperative. This initiative to better understand aggregate risk has developed into what is known today as ERM.
Treliant works with banks to implement an effective Enterprise Risk Management program that not only helps mitigate risks, but facilitates the execution of and is consistent with the bank’s strategic plan.
Treliant has a cadre of risk management experts with financial services industry expertise. Our team includes senior executives from banks and senior regulatory management from the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Board of Governors of the Federal Reserve System (FRB).
Treliant’s Enterprise Risk Management Advisory Services include:
Enterprise Risk Management Framework
- Governance Policies and Risk Appetite Statement
- ERM Dashboards to monitor and manage enterprise-wide risks
- Defining board of director and management responsibilities and activities
Regulatory Interactions
- Resolution and negotiation of enforcement actions
- Remediation plans
- Compliance with enforcement actions to including reporting and documentation
Risk Management Reviews
- Financial Institution Enterprise Risk Analysis
(FIERA™) - Functions and governance
- Operational risk assessments
- Personnel and staffing
- Policies and procedures
- Risk rating accuracy and impact on the ALLL
(ASC 450) - Shared National Credit (SNC)
- Retail/consumer lending/small business/auto underwriting
- Commercial real estate portfolio
- Residential first mortgage forensic underwriting
Recovery and Resolution Planning (Living Wills)
- Strategic advice on approach, scope, and management
- Evaluation of recovery and resolution options
- Comprehensive stress testing
- RRP preparation using custom methodology
Problem Loan Identification
- Loan workout, collection process and loan review evaluations
- Non accrual, ASC 310 impairment, and charge offs
- Loan loss forecasting and ALLL methodology reviews
Capital Adequacy and Stress Testing
- Strategic business and capital plan
- Risk, concentrations, and capital at risk methodology
- Loan portfolio and capital stress testing
Model Validation and Documentation Reviews
- Interest rate risk
- Capital forecasting
- Loan pricing
- Fair value measurements (ASC 820)
Due Diligence for M&A Transactions
- Asset quality reviews
- IT and system reviews
- Management studies
- Bank/branch applications
- Compliance risk reviews
CONTACTS
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Susanna K. Tisa Managing Director  Email |
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James R. Causey Senior Director Email |
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Daniel F. Hayes Senior Director Email |
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Edward J. Keck, Jr. Senior Director Email |
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John J. Ward, III Senior Director Email |
Representative Engagements
Contact Us To Request
- Supervisory Guidance on Model Risk Management Checklist
- Susanna K. Tisa Article: “Avoiding the Perfect Storm: Could Model Risk Swamp Your Community Bank?” featured in Treliant’s Quarterly Newsletter
- ERM Brochure
Learn about the North Carolina Bankers
Association Stress Testing Seminar.