Enterprise Risk Management
Identify and Assess Existing & Emerging Enterprise Risks
Enterprise Risk Management
ERM is a comprehensive and systematic approach used by organizations to identify, assess, prioritize, and manage risks that could impact their objectives and goals. ERM aims to minimize the potential negative consequences of risks while also taking advantage of potential upside opportunities that may arise from them.
When properly implemented, ERM is often integrated into an organization's overall strategic planning and decision-making processes. Today, there are many well-known ERM frameworks in common use. Some like Basel III and Solvency II are mandatory for some banks and insurers, while others like COSO and ISO 31000:2018 are merely advisory frameworks that may be adopted by any organization.
The Case for ERM
Organizations operate in a constantly changing environment with a myriad of disruptive forces and events that can severely impact their ongoing operation and ultimate survival. Nevertheless, organizations are expected to take proactive actions to identify these potential risks and to implement appropriate measures to address them.
A well implemented ERM framework would allow the organization to identify existing and emerging risks and would ensure that effective contingent plans, risk mitigation, or other risk management actions are in place. Implementing an effective Enterprise Risk Management (ERM) framework would provide the necessary assurances to the shareholders, regulators, board, senior executives, and other interested stakeholders that the company is being managed in a more prudent and responsible manner.
Enterprise Risk Management (ERM) is the practical application of a guiding framework and disciplined processes by an entity to identify, assess, control, exploit and monitor Risks and Opportunities from all sources in order to achieve the entity’s strategic and financial objectives.
Optimizing the Integration of Risk, Capital, and Financial Management is key to enhancing Corporate Value.
Typical Measures
- RISK – Economic Capital
- CAPITAL – Available Capital
- FINANCIAL – Risk Adjusted Return on Capital
Our Solution
At GFRAM Consulting we will guide our clients in navigating, disrupting, and exploiting potential risks in order to minimize their threat impact and in some instances to turn those risks into opportunities. Our ERM approach can be tailored to the nature, scale, complexity, and priority of your business. Further, the framework and processes embedded in our approach will allow your organization to create improved Enterprise Value by optimizing the linkages between the following three critical areas of Management:
Our specific ERM capabilities include, but are not restricted to, the following:
Why GFRAM
GFRAM Consulting is superbly qualified to solve your ERM needs given our extensive practical experience in developing, implementing, and managing real life ERM frameworks for major organizations globally. Further, our ERM Consultants have acquired the most prestigious and rigorous Risk Management credentials including CERA, FRM, FSA, and PhD. Our investment in formal training and our practical real-world experiences speak to our technical know-how and readiness to provide practical risk management solutions for the full breadth of risks facing your organization.
Risk Categories
Risk practitioners and most organizations tend to categorize their risks using a somewhat consistent approach e.g. market risk, credit risk, operational risk. However, less consistent and broader categories are sometimes used for risk aggregation, management focus, or other specific purposes. One such succinct categorization is depicted below:
Client Feedback
“…We have found the performance of GFRAM Consulting Ltd. to be excellent. GFRAM Consulting Ltd. has always demonstrated a high level of professionalism, expertise and competence in the services for which they have rendered. They have always been very responsive and willing to offer and provide advice on matters for which we have sought their assistance…”
Statistical Institute of Jamaica
“… JMB contracted the services of GFRAM Consulting to conduct an actuarial review of the Mortgage Insurance Fund (MIF) and Mortgage Insurance Reserve Fund (MIRF)… we found GFRAM to be very thorough and their findings were contained in a detailed report which was presented in a timely manner. The report was the best we have received over time and provided JMB with valuable insight and recommendations regarding the operations of the Funds…”
Jamaica Mortgage Bank
“…Their thinking, probing and researching of our business and industry needs has led us to a better methodology and standard. They were very professional, well organized, and did an excellent job of presenting the solutions and recommendations. They took the time to understand our business and industry needs and provided innovative practical solutions… Working in partnership with GFRAM Consultancy… also enabled our team to expand our knowledge.”
Betting Gaming & Lotteries Commission
“GFRAM has been the Consulting Actuarial Firm for the Bureau of Standards Jamaica (BSJ) in the General, Health and Life Insurance areas. The work product received from GFRAM is usually well presented, detailed and self-explanatory. Further, we have found their staff to be knowledgeable, professional and readily available to provide clarity where necessary…”
Bureau of Standards Jamaica
“We have been using GFRAM Consulting Limited to prepare Actuarial Valuation Reports and provide Actuarial Services for Tropical Battery Company Limited Pension Fund for the past ten (10) years. We have always been completely satisfied with the turn-around time to provide the reports and with the quality and presentation of their work… We also found the staff to be professional, knowledgeable and courteous… “
Tropical Battery Company Ltd
“… Over the years, GFRAM has proven to be very efficient, reliable and offered excellent customer service and satisfaction. Overall, they offered excellent service above what was required of them… They facilitated a short training session for selected members of staff with just one day's notice and they always produced the necessary deliverables before the stipulated deadline even when we were late…”
Real Estate Board
“The Hanover Municipal Corporation is extremely pleased and highly satisfied with the level of consultancy services that GFRAM Consulting has provided us with. We have found the firm to be very prompt, responsive and highly professional… Critically, the cost is very reasonable and the payment terms very convenient for the very high quality of service provided. Also, the firm will go well beyond the call of duty to satisfy their customers, as we have personally experienced…”
Hanover Municipal Corporation
“GFRAM Consulting Limited has provided us with Consulting Actuarial Services by way of an Actuarial Merger Valuation of two (2) of our Defined Benefit Pension Plans. Based on our interactions with GFRAM, we have found them to be very thorough in conducting the task at hand, as they would provide the relevant explanations and advice required. In addition, their staff was professional and courteous and was readily available to provide clarity in preparation for our presentation to the Board…”
Sugar Industry Authority
“… GFRAM Consulting has demonstrated knowledge of the insurance industry and has given sound advice in our negotiation with our broker. GFRAM Consulting has proven to be efficient and responsive, providing timely reminders for the renewal of insurances… renewal reports was completed within the scheduled time each year… A high level of thoroughness was evident in the comparing of proposals to other public bodies with similar risks and ensuring that all procedures were fulfilled…”
Public Broadcasting Corporation of Jamaica
“GFRAM has partnered with us in navigating the best coverage decisions for our insurance portfolio, helping us to carefully evaluate risks and liabilities associated with those decisions. The staff is knowledgeable, very thorough and resourceful, making communication seamless and the client relationship satisfying… This, we believe, is a demonstration of capacity and aptitude…”
Tourism Product Development Company
