ENTERPRISE RISK MANAGEMENT
At DR Risk Solutions, we specialize in Enterprise Risk Management. That means we help you drive corporate and shareholder value on a risk-adjusted basis by delivering management processes fully integrated into the strategic plan of your enterprise.
Too many risk management programs are aimed at reporting risk levels or simply at compliance, and are viewed as a regulatory necessity. We see risk management as an integral part of strategy and value creation. We’ll help you leverage your current investment in risk management to enhance your economic performance.
We do this by creating useful tools to allow decision-makers to understand risk at all appropriate levels, balance risk and reward across your full range of activities, allocate resources, and establish risk tolerances, all aimed at improving your bottom line.
At DR Risk Solutions, we analyze enterprise risk levels across the following categories:
Capital – the risk that adverse and unexpected events will lead to significant limitations on your operations and strategy
considering both regulatory and financial market requirements.
Liquidity – the risk of not having enough cash available to meet unexpected demands due to adverse conditions or significant
Sensitivity – the risk that your capital and liquidity will be impaired due to significant, adverse changes in interest rates.
We apply risk-adjusted performance and concentration measures across individual loan portfolios as well as the loan
portfolio as a whole on both a quantitative and qualitative basis. Appropriate – but not more than what is useful – granular risk
ratings are determined and applied to improve overall performance.
We believe that both a bottoms-up and a tops-down approach are necessary to mitigate operational risk. While some financial
institutions apply highly sophisticated techniques to quantify operational risk, we believe that is not helpful for most financial
institutions. We construct systems that identify specific, granular controls, along with escalation and reporting systems to
protect against significant, unexpected losses. Key metrics are identified and measured to keep senior management and the
board informed on trends and emerging risks. Included in this category is the broad range of risks associated with oversight
of third parties, including vendors and counterparties.
Legal, Compliance, Financial Reporting Risk
In this area we assess and consolidate legal challenges, changes in the compliance profile of the institution, and changes in
financial reporting requirements and the potential effects on perceived shareholder value.
We assess, accumulate and report on activities that may impair your reputation. We view thIs risk category both as a separate
risk element, which is consistent with the regulatory approach, and as an element of cost associated with other risk
We assess this area by seeking answers to these simply stated questions: Are you doing, and planning to do the right
things? Do you have the necessary resources to do what you want to do well? Do you have mechanisms to assess how you
are doing and the capacity to adjust as indicated?
In this final risk category we help bring the risk management process most fully relevant to a broad understanding of your
company's Enterprise Risk Management program full circle in a fully integrated way to drive your strategic plan and creation of