Enterprise Risk Management
CORIN designs unique, comprehensive and therefore sustainable ERM projects in the below mentioned areas, in order to build up an effective enterprise risk management structures within entities. These below mentioned sub-projects are executed in various combinations in line with the company needs and objectives.
Gap Analysis
Assessment of existing enterprise risk management activities / documents in companies and designing road map for targeted enterprise risk management maturity level. Within the scope of this step, assessment is conducted on topics that are shaped according to international standards and best practices accepted by authorities all around the world. At the end of this study, maturity levels on each assessment areas and enterprise risk management implementation road map are prepared, presented and reported. CORIN also provides support in design and implementation phases as mentioned below.
Risk Appetite and Tolerance Analysis
Risk appetite levels of companies depends on the size of the company, its industry, the geography in which it operates, the corporate culture and even the investor profile itself. To build up an appropriate risk management environment, main goal should be designing a robust foundation reflecting risk appetite and the risk tolerance levels which will shape up the risk-taking capacity and resource allocation for risks. Once risk appetite is determined using risk priorities and focus, risk assessment scales are developed so that risks can be objectively prioritized in the organization.
Risk Identification and Prioritization
Main focus of this studies is identifying strategic, operational, financial, and external risks and prioritizing them according to predetermined assessment anchors – risk assessment scales. In this step, all existing and possible risks (problems, accidents, threats, and opportunities) are defined and elaborated with employees. Following the risk identification, root causes behind the risks are analyzed and mapped based on their impact and likelihood. At the end of this study, prioritized risk lists and risk maps are prepared for each business unit, risk inventories are consolidated, and all risks are reported using risk maps, dashboards and other visual reporting methods.
Risk Mitigation Solutions
It is the study of establishing the road map to mitigate and manage the identified critical risks. SMART actions to minimize the likelihood and impact of risk event are designed with employees according to detailed examination of best practices in the specific industry. A short-medium-long term road maps are prepared for each risk in line with available resources and business priorities.
Enterprise Risk Management Procedures and Instructions
It is aimed to prepare documents in line with the existing company culture and practices in order to carry out enterprise risk management activities effectively, to create a value added and dynamic structure. Enterprise Risk Management policies, procedures and instructions on implementation are prepared in this phase as risk identification, prioritization, and mitigation (action planning) guidelines to increase risk management effectiveness throughout the company.
Enterprise Risk Management Organization and Training
As it is crucial to shape up the best possible risk management structure in a company, other fundamental component is the organization to carry out risk management activities. Aim of this phase is to establish best risk management organization for effective enterprise risk management, to shape roles and responsibilities, design the most suitable authority structure deploy ERM to all levels of management.
Company specific awareness and user trainings are designed and conducted by our consultants and in some cases webinars and online training sessions are held to maximize awareness throughout the organization.
Periodic Enterprise Risk Management Performance Audit
The main purpose of this phase is controlling and evaluating the effectiveness of enterprise risk management organization, processes and documentation quality. It is also aimed to determine improvement areas and ensure all necessary steps are taken to reach a high-quality ERM approach by the company. Enterprise risk management assessment audit report and road map are presented as the main output of this step.