How to Establish & Review Your Risk Metrics Effectively

Why Should You Attend:

The US business environment as well as those of other counties have experienced significant risk events with substantial risk consequences over the years. In recent times there have been a considerable number of risk episodes. To the extent the risk conditions that caused a risk episode to occur could have been identified and immediate corrective action taken, the risk event may have been prevented or modified. Sound risk management practices together with a set of effective risk metrics could have possibly avoided or modified many of the risk episodes that were experienced.

• This training allows the participants to understand the concept of risk metrics, to provide a blueprint for creating a set of risk metrics and to be given a large sampling of risk metrics that are employable.
• It will help in formulation of a specific aspect of an organization’s risk management for individuals with responsibility of overseeing risk, for managing the risk environment and for providing risk education.
• Lastly, it provides an actual case study that will establish how a major risk event could have been avoided, or modified, if Risk Metrics had been effectively employed.

Areas Covered in the Webinar:

• Understand Risk Metrics
• Provide a conceptual framework to comprehend the value of risk metrics
• Establishing risk metrics as a key element of risk management
• Defining Risk Metrics
• Review the basic elements of risk metrics
• Types of Risk
• Review of risk metrics in the context of the different types of risk.
• Risk Metrics Applicability
• Review risk metrics in the context of risk environments
• Best Practices for Addressing Risk Metrics
• Thought process for establishing a set of risk metrics for a business activity
• Consequences of Ineffective Risk Metrics
• Potential impact of unidentified risk conditions
• Review of Actual Risk Metrics
• Display of a large sampling of generic risk metrics and risk metrics specific to a business activity
• Management of Risk Metrics
• Review how risk metrics should be monitored and evaluated and how risk conditions identified should be addressed
• Role of business management and the risk management function to address risk conditions
• Place Risk Metrics in a real life context
• Review the risk metrics that were absent or ineffective in terms of an actual risk event experienced by a company

Who Will Benefit:

• Executive Managers
• Business Managers
• Risk Managers
• Compliance Managers
• Auditors
• Risk Management Educators
• Regulator Staff

Instructor Profile:

Robert Geary is the founder of Greenwich Risk Management Advisory Services, LLC, and serves as the principal consultant on many of the firm’s consultancy mandates. He has been a banking and finance industry professional for 41 years and has spent 34 years with JP Morgan Chase & Co in various roles pertaining to senior treasury, financial market, asset management and risk management.

Earlier in his career, Mr. Geary managed Chase Manhattan Bank’s euro and other offshore funding activities and was the bank’s first Asia/Pacific area treasury and financial markets executive located in Hong Kong. There for five years, he had overall functional management responsibility for the treasury, currency trading/sales activities and securities portfolios of Chase’s branches in nine countries in the region that included the major centers of Japan, Hong Kong and Singapore. Later in his career, he served for three years as western hemisphere area treasury and financial markets executive with similar responsibilities for Chase’s branches in

South America, Canada, Panama and Puerto Rico, and went onto serve the institution in other financial market line positions.

For the last 6 years of his career with JP Morgan Chase, Mr. Geary had undertaken risk management oversight roles including head of market, credit and operational risk management for Chase Asset Management and being managing director of fiduciary risk management across the firm.

He has served on the board of directors of Chase Manhattan Overseas Banking Corporation as well as on numerous senior committees that included Chase’s Portfolio and Investment Strategy Committee, Tax Committee, International Asset/Liability Management Committee, Chase Investment Policy Committee, and Capital Markets & FX Risk Management Committee. Prior to joining Chase, he held positions at Chemical Bank, Chrysler Financial Corporation and National Bank of North America.

Mr. Geary holds a BA degree in economics from Pace University and did graduate studies in finance at New York University Graduate School of Business. He is also currently a member of the Executive Advisory Board of St. John’s University Department of Accounting and Taxation.

Topic Background:

Risk is present in all businesses. The ability to identify the potential cause of a risk event occurring and take corrective action is critical to the risk management of a business or any operating entity.

The cause of a risk is typically the result of the presence of a risk condition which is a weakness in the conduct or management of a business activity that can precipitate the occurrence of a risk event. For each operating unit and business activity of an organization, as part of its risk management oversight, there should be a set of indicators that will help identify risk conditions in the organization. These indicators are called risk metrics.

There are a number of generic risk metrics that typically apply to all business activities and then there are others that apply to a specific business activity. Risk metrics should consider all types of risk which would include: market risk, credit risk operating risk, technology risk, fiduciary risk, client relationship risk, legal/regulatory risk, guideline observance risk. Once a risk metric identifies a risk condition, it is then the responsibility of business management, together with its risk management unit and Compliance unit, to undertake corrective action to address the condition. This risk identification and corrective action process will eliminate or reduce the potential of a risk event occurring.

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