What is the role of enterprise risk management in banks?
Enterprise Risk Management (ERM) refers to the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization's objectives (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall.
17 people found this useful
There are role play scenarios for bank managers. They can be foundin organizational behavior classes and job training seminars.
The role of an entrepreneur is starting the organization.Entrepreneurs are business innovators who come up with ideas andset them in motion.
An Entrepreneur organizes, manages, and assumes the risks of a business or enterprise.
An operations manager at a bank is the supervisor of the employeeswho work at his or her branch. The operations manager coordinatesthe scheduling, job duties, and activities o…f the bank's personnelso that everything is taken care of and runs smoothly. He or shemay delegate some of the responsibilities to the assistant manager,but the operations manager is ultimately responsible.
Following are the key responsibilities of Top management: 1. The CEO articulates a strategic vision for the corporation. 2. The CEO presents a role for others to identify with… and to follow. 3. The CEO communicates high performance standards and also confidence in the followers' abilities to meet these standards.
planning, organising, providing leadership and controlling all administrative functions
1. function 2. benefits.
I just had same problem very recently. I so know what you mean. Good luck with working this issue out. I'm sorry i can't be more helpful:)
The finance manager handles finance. The role of finance manager ispivotal. He can change the fortunes of the organisation with proper planning, monitoring andtimely guidance.… Equally, if the manager is not competent, even a profitable organisation maydwindle or even sink. The finance manger is, now, responsible in shaping the fortunes of theenterprise. The role of finance manager, in a modern business, is pervasive in all the activities ofbusiness firm, including production and marketing. It has been rightly said, money begets money. Business needs moneyto make more money. However, business can make money, when it is properly managed. Thefinancial history is replete with stories how even the profitable organisations were wound up,when the management of finance had turned bad due to mismanagement of financial affairs. It is misunderstood, in some corners, that the role of financemanager is important only in private organisations. It is not so. His role is important, both inprivate and public sector. He has a positive role to play in every type of organisation. Even innon-profit making organisations, his role exists as long as there is involvement of funds. Influences Fortunes of Firm: The history of failures oforganisations is interesting. Many firms have failed, not because of inefficiency of production,inability in marketing or nonavailability of funds but due to theabsence of competent finance manager. In many public sector undertakings, in particular, state government undertakings,importance is given to the appointment of peons, more than adequately, but not to theappointment of competent professional manager in finance, even after lapse of several years. That is thereal secret of numerous lossmaking organisations, in public sector!Over the years, the picture has been changing, but only after the real damage has already occurred in those public sectorundertakings, due to the nonappointment of professional financemanagers, at the time of formation of those undertakings.14Financial Management In several public sector undertakings, the presence of competentfinance manager is often found inconvenient. A finance manager can not play any significant rolein the public sector, unless he is allowed to play. Exists Everywhere: The role of finance manager, in modern times,can be well said, universal and pervasive. Hardly, we find any activity, which doesnot involve finance. Even entertainment in a firm requires financial management due tofinancial implications. In modern business, no decision is taken without the consultation of finance.Even in recruitment, the presence of finance representative has been a normal featuremanager. Only the level of finance representative changes, dependant upon the status of position forwhich recruitment is held. At times, people working in other departments feel that the financemanager has been interfering in all matters, unconnected to him. It is due to inadequateunderstanding of the role and expectations expected of him in modern business. The finance manager can,definitely, contribute to the overall development of the organisation provided he is competentand allowed to perform his functions, independently. In his new role, the finance manager must find answers for thefollowing three questions, again in the words of Solomon: â¢ How large should an enterprise be, and how fast should it grow? â¢ How should the funds be raised? â¢ In what form, should the firm hold its assets? To sum up, finance functions or decisions include the followingimportant areas, where the finance manager has to contribute: â¢ Investment decision or long term asset-mix decision â¢ Finance decision or capital-mix decision â¢ Liquidity decision or short-term asset mix decision â¢ Dividend decision or profit allocation decision The main objective of all the above decisions is to increase thevalue of the shares, held by the equity shareholders. The finance manager has to strive forshareholders' wealth maximisation. While discharging the functions, the finance manager has to focushis attention on the following aspects to maximise the shareholders' wealth: 1. Procuring the funds as and when necessary, at the lowest cost, 2. Investing the funds in those assets, which are more profitable,and 3. Distributing the dividends to the shareholders to meet theirexpectations and facilitate expansion to achieve the long-term goals of organisation.
Credit Risk Management (in many organizations, not just banks) has to do with the relative amount of exposure to the company as presented by both the credit that they provide …and the credit that they are granted. On the provisioning side, banks balance the amounts and types of credit they issue in order to meet stringent regulatory (and in some cases, legislative) requirements concerning capital, liquidity and leverage. Through weighted diversification, a bank is able to maximize the relative revenue generation of loan portfolios while minimizing the potential exposure held by the bank if borrowers do not pay them back. On the granting side, banks borrow money through customer deposits, bank-to-bank loans, federal loans and money raised through corporate debt issuance and stock sales. Banks balance how much money they borrow (and the associated rates and durations) in order get create a positive return when that money is lent back out to their own borrowers. Overall, the Credit Risk Management organization in a bank will define the price sheets, risk requirements and underwriting processes associated with lending money and, in many situations, work with the Corporate Finance team to mitigate risk during money raising activities.
To Screw over the American people
Administrative Manager . Successful managers are very self-disciplined, intelligent, responsible and presentable people. An Administrative Manager would need to be positive, …enthusiastic, have good leadership skills, get on well with people, be firm but just and have the ability and perseverance to try and help the company achieve their goals. She/he should be able to motivate people and make them feel that they are an important cog in the business wheel. The employees should know that management is trying their best to make life for everyone in the company as profitable, productive and enjoyable as possible, so that they will be much more likely to concentrate on doing their best. Every worker in a business is given a specific task or tasks to do by the manager who does the planning, co-ordinating and organising of activities to reach the required goals and she/he would be the one to give orders and exercise control over the entire process.. The authority in a large organisation consists of three levels.. 1. Top Management (board of directors, chairman and managing director or stockholders in a closed corporation). 2. Functional Managers (administrative, production, financial, marketing and purchase managers). 3. Operations Managers (advertising, credit and cost calculation managers). Each of these managers fulfil a task for which he or she has been trained.. The General Manager (CEO) handles personnel functions, marketing, production and administration. They are not specialists in a specific field but can work in most fields or subsections of the company.. The Marketing Manager organises, plans, controls, co-ordinates and gives orders relating to all the marketing activities.. The Production Manager is responsible for the budgeting, promotion and selling of a product. The Purchasing Manager does purchasing for the organisation and negotiates with suppliers about the prices of items which have to be bought.. The Personnel Manager (H.R.) works with matters relating to personnel - interviews for employment, leave, salaries and so on.. An Administrative Manager 's tasks would include the following:. Ã Responsibility for the overall work performance of a company.. Ã Management of office environment.. Ã Gathering, adapting, storing and distributing information within the company.. Ã Using information systems.. Ã Providing specialised support to other departments and managers.. Ã Providing document and telecommunication management.. Ã Planning, organising, providing leadership and controlling all administrative functions.. Ã Managing quality and cost control.. Ã Rendering a service to other functions within the organisation.. Ã Providing training and development to the staff.. Ã Managing the many fields of work which the employees carry out.. Ã Ensuring that human and material resources are correctly utilised.. Ã Meeting with other members of management and planning for the future. . Career Fields : Admin and Office. Business and Management. Courtesy : CareerExpo
Because there is no telling how many customers would want to withdraw their money from their bank accounts on any given day. Banks use the deposit money to lend loans and make…s a profit. If they lend too many loans, they may not have money to meet withdrawal demands. So banks have to maintain their liquidity position in a strong way.
The differences between traditional risk management and enterpriserisk management are their strategic applications and performancemetrics. Enterprise risk management involves …the whole organizationwhile traditional risk management is usually more departmentalized.
The risk manager can be involved in several different areas, including finance management, nosocomial infections and personnel management. In general, a risk manager works to …identify areas of risk (such as hospital-acquired infections) and ways to reduce or manage that risk to mitigate consequences to the hospital.
Enterprise risk management in a business has a framework to help identify, respond to and monitor risks to a business opportunity. These are avoidance, reduction, alternative …actions, share or insure and accept.
why enterprise risk management is a more effective approach fortoday's organizations.