How ERM May Impact Credit Ratings

Standard & Poors started looking at ERM in banking and insurance companies in the mid 2000s. Steve Dreyer, Managing Director and Practice Leader at Standard & Poors, provides insights at points of focus S&P considers as it evaluates an organization approach to ERM and how their assessments might impact the organization’s overall credit rating. 

He highlights factors related to the kind of environment that fosters a strong ERM process and its overall fit within the organization’s culture. He also speaks to obvious failures in a risk management process, and how ERM has to be done correctly to be effective within an organization.