Standard & Poor’s Releases a Request for Comment on ERM

On Thursday, Nov. 15, 2007, S&P issued a request for comment on their proposal to include an assessment of corporate enterprise risk management practices as a key component of their overall credit ratings analysis for nonfinancial companies. S&P proposes to include ERM analysis into their corporate credit rating process as the principal methodology to evaluate management and to determine the overall business profile—a key factor in the S&P credit rating. Four major analytic components will comprise the S&P ERM evaluation. These include analyses of risk management culture and governance, of risk controls, of emerging risk preparation, and of strategic risk management.

Original Article Source: “Standard & Poor’s To Apply Enterprise Risk Analysis to Corporate Ratings“, Standard & Poor’s, May 7, 2008