Corporate Governance: Case Studies

Governance & Business Line Alignment

Problem: The institution had suffered losses in areas that surprised management and wanted to improve corporate management and oversight of risks.

Solution: Risk worked with management to define how corporate risk management would work with business lines (e.g., venture capitalist model where risk is controlled through extensive reporting and allocation of resources). During the engagement, risk policies and limits were aligned with corporate strategies and risk appetite, an enterprise risk management committee was established, centralized risk group roles and responsibilities were changed to enhance risk oversight and partnering roles with the business lines, and overall reporting was improved to provide better, more concise communication of risk issues.

Result: Management was better informed and able to understand and oversee the combined effects of credit, interest rate, operating, and strategic risks within the institution.