Learn about the different ways that corporations manage risk, including monitoring by risk committees, risk managers, and sometimes by having a dedicated C-level executive for risk management, who would have the job of chief risk officer or CRO.
- There are people behind the words risk management.…After all, risks don't monitor and manage themselves.…Most professionals involved with corporate risk management…have a high level of numeracy, curiosity,…and a desire to get to the bottom of things.…Corporate financial and non-financial risks…require active risk management from risk managers,…risk committees, executives, and advisors…dedicated to confronting risk.…In business we talk about market drivers as fear and greed,…about a big sack of money and a big sack of money on fire.…
If you're in risk management, you're usually looking out…for the big sack of money that could catch fire.…In this video, we will dig into the execution…of risk management solutions,…including the corporate players…who actually monitor and manage risks.…The goals of risk management professionals…in a corporate organization are to monitor, measure,…and actively manage risks.…Part of this is to make sure…that current risks are being watched…and future risks are being watched out for.…
Jason Schenker of Prestige Economics discusses nine types of corporate risk, including financial and nonfinancial risks. He explains the difference between direct risks that companies face constantly, as well as indirect risks that usually come from vendors, competitors, and counterparties. Then he covers how risks are typically resolved, either by elimination (divestiture or acquisition), transfer (hedging or insuring), offset (creating a natural hedge), or ownership (keeping the exposure). Finally, he reviews how corporations can actively measure and monitor risk by appointing dedicated risk managers, officers, and committees.
- Understanding risk in corporations
- Risk management process
- Nine different types of corporate risks
- Financial market risks
- Direct and indirect risks
- Risk management solutions
- How corporations actively manage risk