Enterprise Wide Risk Management enables sustainable value creation
After the global financial crisis, regulators started taking a closer look at corporate governance and robust risk management.
In Switzerland, the FINMA circular 2017/1 “Corporate Governance – Banks” comes into force on 1 July 2017. It contains far-reaching requirements on corporate governance, risk management and the internal control system of banks. Among other things, it requires management to set up a comprehensive structured framework for an enterprise-wide risk management (ERM) framework, which has to be approved by the Board of Directors.
For insurance companies in Switzerland, the corresponding FINMA circular 2017/2 entered into force on 1 January 2017.
For banks and insurers, an ERM provides an opportunity to add real value to the business:
- Better awareness of risks: ensure that the product development, pricing and underwriting guidelines reflect the company’s risk capacity and risk tolerance
- Improve client experience: back up client promises – from the sale of products to the handling of claims
- Get more done with less: optimized use of resources and talent
- Data becomes knowledge: get a better grasp on risks and opportunities to gain a competitive edge
- Corporate resilience: protect operations and your balance sheet from “Black Swan” events
- Create sustainable value for shareholders: maintain your reputation, improve the return on investment and reduce volatility in profits
At KPMG, an expert, performance-driven, experienced team has created a comprehensive best-practice ERM framework that is based on seven components and draws on our in-depth knowledge and risk management experience. We have specifically tailored the framework to each industry - banking and insurance - so that our clients benefit as much as possible.
- Our in-depth knowledge concerning risk management and regulatory expectations make us an excellent partner to help implement an ERM tailored to your needs.
- Access to industry expertise and benchmark information
- Ready-to-go tools to analyze impacts and deviations
- In-depth experience allows for an acceleration of the implementation process
- Innovative ideas create new perspectives
Helen Campbell, Partner Financial Services