I have often compared the role of the community Bank CEO and the pastor of the local community Church here in the United States. They both have tremendous influence in the community. Not always, but in most cases, both the Bank CEO and the pastor get results through their strong relationships. They both see the big picture. Because of the trust required, one poor decision can kill their organization. And last but not least, they both have limited resources. Some community bank staff might even claim they are "volunteers".
Enterprise risk management is a perfect solution to these conditions. ERM is a tool for collecting and organizing strategic issues and business risks. Once organized these risks can be prioritized, making resource allocation more effective. Collecting and communicating risks throughout the organization increases transparency. As more members of key management personnel and the BOD become exposed to more bank issues on a consolidated basis, the risk of making a bad decision go down materially. How have you seen ERM reduce risks for the community bank CEO?
Enterprise risk management is a perfect solution to these conditions. ERM is a tool for collecting and organizing strategic issues and business risks. Once organized these risks can be prioritized, making resource allocation more effective. Collecting and communicating risks throughout the organization increases transparency. As more members of key management personnel and the BOD become exposed to more bank issues on a consolidated basis, the risk of making a bad decision go down materially. How have you seen ERM reduce risks for the community bank CEO?
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