Key facts
- Banks' enterprise risk management frameworks are growing in influence.
- Headcounts within ERM departments are shrinking.
- The scope and importance of ERM functions are expanding.
An analysis by Risk.net reveals that enterprise risk management (ERM) frameworks within banks are increasing in influence, even as the number of personnel dedicated to these functions decreases. The latest Risk Benchmarking exercise indicates a trend towards slimmer, more automated ERM operations that are nonetheless gaining a more prominent role in financial institutions. ERM, a function that is relatively new to many lenders, has historically been characterized by competing visions of its mandate and varying levels of resources.