Enterprise Risk Management

  • 1.  ERM Reporting Structure

    Posted 05-25-2009 02:22 PM
    This message has been cross posted to the following egroups: Risk Professionals and Enterprise Risk Management.
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    I am setting up an ERM program for our credit union.  I am trying to determine the best reporting relationship for ERM and where it should fit in our current organizational structure. I am looking for examples/samples of current org. charts to understand where ERM fits.  We do not have a CRO position; only CEO & COO. I have seen ERM report into VP Audit, VP Finance and directly to COO/CEO. 
    I would be interested to hear from anyone on this subject and any advice on what relationship works best (pros and cons) at a "executive management" level.  (I have established that ERM reports into the Audit & Finance Committee at the Board Level).

    Note:my role also includes corporate privacy officer, business continuity and workplace safety (OHS).
    Thank you in advance for your response.

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    Shelley Vandenberg
    Manager, Enterprise Risk
    First Calgary Savings & Credit Union
    www.1stcalgary.com
    CALGARY AB Canada
    svandenberg@1stcalgary.com
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  • 2.  RE:ERM Reporting Structure

    Posted 05-26-2009 10:26 AM
    There are various studies that have concluded the reporting point varries according to the comany's structure and exposures.  For example, if you have a big claim or contractual exposure it might make sense to report to legal.  If your exposure is more financial in nature, then reporting through treasury or finance might be an option.  Depending on the size of the company, it might make sense to report to the CEO.  There is not just one right answer here.

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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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    Original Message


  • 3.  RE:ERM Reporting Structure

    Posted 05-26-2009 12:06 PM
    My thought is the higher ERM can report in the organization, the better.  So, if reporting to the CEO is an option, I would grab it.  If not, I would think about Strategic Development.  If the goal of ERM is to maximize opportunity and minimize risk to ensure nothing gets in the way of the organization achieving its objectives, Strategic Development seems most closely aligned with that focus, outside of the CEO.

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    Mark Bigelow
    Strategic Risk Analyst
    Premera Blue Cross
    Seattle WA
    United States
    mark.bigelow@premera.com
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    Original Message