Enterprise risk management for financial services firms: a brief literature review

Abstract

Financial services firms have pushed for application of enterprise risk management (ERM) within their firms as a response to flawed risk management and in-house governance systems. The problem is that while enterprise risks continue to be managed with a fragmented strategy among risk managers in the financial services industry, aggregation of risk strategies remains problematic due to inconsistent views on effective ERM strategy among practitioners. This literature review explores a wide range of issues as well as different practices and strategies related to ERM, highlighting the knowledge needed for financial services firms to effectively aggregate differing concepts of risk among their managers in order to develop an effective ERM strategy.