Enterprise Risk Management

  • 1.  S&P ERM Analysis for Credit Ratings of Nonfinancial Companies

    Posted 01-11-2010 03:12 PM

    Does anyone know what is the latest on this subject? Did S&P publish more guidelines since their last newsletter on 07-May 2008 - "Standard & Poor's To Apply enterprise Risk Analysis to Corporate Ratings"?

    According to that newsletter, S&P was to begin to incorproate ERM into discussion with rated ompanies in the 3rd or 4th Quarter of 2008. They would defer formal scoring of companies ERM capabilities until they have conducted a sufficient number of reviews to permit reliabile benchmarking and published criterias most likely before 2009. Does anyone know this actually happened?

    Thank you for you kind attention.

    Regards
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    Andrea Gu
    Manager, Risk Management
    Covanta Energy Corporation
    Fairfield NJ
    United States
    AGu@covantaenergy.com
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  • 2.  RE:S&P ERM Analysis for Credit Ratings of Nonfinancial Companies

    Posted 01-12-2010 10:34 AM
    The latest I heard is that during 2009 S&P was to  discuss the process with management, gather ERM information and begin benchmarking.  By the end of 2009 they were going to release an update on this review process and issue a timeline for incorporating ERM ratings into their analysis.  I've not yet seen any update.

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    Linda Bagby
    Corporate Risk Manager
    Graybar Electric Company, Inc.
    St. Louis MO
    United States
    linda.bagby@graybar.com
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  • 3.  RE:S&P ERM Analysis for Credit Ratings of Nonfinancial Companies

    Posted 01-13-2010 11:39 AM

    Last I heard the timeline was suffering due to staffing constraints as well as their internal effort to re-evalaute the methodology they have previously used to rate insurer ERM programs.

    As a member of the RIMS ERM Development Committee, I do have an opportunity for periodic updates directly from S&P. I will bring this up at our next meeting and if we have any new information, we can either issue something through RIMS or on this board.

    Thank you.
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    Jeffrey Vernor
    Director, Operational Risk Management
    Russell Investments
    Tacoma WA
    United States
    jvernor@russell.com
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  • 4.  RE:S&P ERM Analysis for Credit Ratings of Nonfinancial Companies

    Posted 01-13-2010 12:55 PM

    We keep up with S&P news related to ERM on our website.  You can find it here:
    http://www.riskonnect.com/risk-management-news/?Tag=S%26P

    The question is does S&P's ERM rating have teeth?  At this point, I haven't seen it.  Someone please tell me otherwise if you disagree.


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    Bob Morrell
    Chief Executive Officer
    Riskonnect
    Marietta GA
    United States
    bob.morrell@riskonnect.com
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  • 5.  RE:S&P ERM Analysis for Credit Ratings of Nonfinancial Companies

    Posted 01-22-2010 04:59 PM

    For some reason, they are not being as bold on non-financial institutions as they are with financial institutions. I can tell you, working for an FI, that it gets lots of attention from my management and provides a significant impetus to driving our risk management practices.
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    Susan Meltzer
    Chief Risk Officer, GI
    Aviva Canada Inc.
    SCARBOROUGH ON
    Canada
    susan_meltzer@avivacanada.com
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  • 6.  RE:S&P ERM Analysis for Credit Ratings of Nonfinancial Companies

    Posted 01-12-2010 10:36 AM


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    Kevin Sullivan
    Sr. Manager
    Amper, Politziner & Mattia
    Edison NJ
    United States
    sullivan@amper.com
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    S&P published an update entitled "Progress Report: Integrating Enterprise Risk Management Analysis Into Corporate Credit" on their Ratingsdirect website on July 22, 2009. They have deferred including ERM References into credit ratings reports until 2010.