Zurich has launched a new Enterprise Risk Management (ERM) healthcheck assessment tool for financial institutions. The tool was created to assist financial institutions in response to recent regulations making them more accountable for risk management.
“The ERM Healthcheck helps financial institutions to objectively assess their current ERM strategy and processes to find opportunities for improvement,” said Chris Taylor, Zurich’s head of Financial Institutions for Commercial Markets. “Based on their responses to the assessment, they will receive recommendations for improving the institution’s ERM framework.”
Zurich financial institution qualified customers will be able to schedule a complimentary one-hour consultation with a Zurich Enterprise Risk Management specialist for a more detailed professional analysis of the results of their ERM Healthcheck.
Taylor said the ERM Healthcheck Assessment will gauge a company’s risk awareness based on their responses to a short 10-question assessment. The assessment will guide the responder with customized recommendations on how to help strengthen the internal environment for a more risk-aware culture; how best to assign responsibilities; build risk tolerances into their framework to gain efficiencies; identify impacts of events and causes; recognize the elements necessary for a solid communication plan; and evaluate the interdependencies of business units to determine the impact multiple events may have on each business unit individually and in aggregate.
“ERM develops a framework that ensures alignment of risk management objectives with the objectives and strategies of the organization and develops a process that promotes an active and transparent risk culture,” Taylor said.
He added that ERM can also be used to establish an organization’s appetite for risk, which could then be used in a merger and acquisition opportunity, “It allows the institution to evaluate the opportunity against their own risk strategy and tolerance.”
Zurich Insurance Group (Zurich) is a multi-line insurer that serves its customers in global and local markets and provides a wide range of general insurance and life insurance products and services.