Philadelphia, PA (May 7, 2002
) —
RMA—The Risk Management Association and First Manhattan Consulting Group (FMCG) are launching a study that will help financial institutions determine how risks interrelate across all major lines of business and product offerings.
The Enterprise-Wide Risk Management (EWRM) Study will focus on the measurement and management interplay among and within the various risks. Like RMA's and FMCG's pioneering 1997 study, Winning the Credit Cycle Game, the EWRM study will seek to identify best practices in EWRM among leading institutions.
"This study is built around the premise that EWRM can provide higher risk-adjusted returns," said Mark Zmiewski, RMA's director of Information Products who is managing the study. "If institutions can determine their risk across their entire enterprise, it will lead to more efficient use of capital and dampen their earnings volatility."
Alden L. Toevs, head of FMCG's Risk Practice said that "Enterprise-wide risk management creates the environment where senior management can add tremendous value to a company's bottom line. Properly done, risk presentations bring focus on the essential risk costs of the company and create a stage for active and ongoing decision-making."
The study will encompass all major lines of business in financial services. Study participants will primarily include commercial and investment banks in North America and around the globe. Each participant will fill out an extensive questionnaire and may be asked to participate in a follow up telephone meeting to review responses for greater insight and clarity.
An executive summary of the study will be publicly available through RMA in the fall of this year, but only those participating in the study will receive the detailed EWRM Study final report.
Any institution that would like to participate in the study should contact Mark Zmiewski at RMA, at 215-446-4085.
About RMA
RMA is the only financial services association that specializes in promoting effective credit risk management practices across the entire financial services industry. Its membership consists of more than 3,100 financial service providers. These institutions are represented in the association by more than 16,000 commercial loan, credit, and risk management professionals in 50 states, Puerto Rico, Canada and numerous foreign cities, including Hong Kong, Singapore and London.
About First Manhattan Consulting Group
First Manhattan Consulting Group (FMCG) is a highly focused management consulting firm specializing in financial services. Since 1980, FMCG has completed over 2,500 assignments for U.S. and foreign banks; leading investment banks; brokerage firms; insurance companies; other diversified financial firms; and technology vendors to the financial industry. FMCG provides a mix of strategy, risk management, finance, marketing, technology, productivity, and other skills to its clients. Visit FMCG on the Web.