Addressing risk jointly
ERM and internal audit teams complement each other.
Consider the relationship between your credit union’s enterprise risk management (ERM) team and the internal audit team. If these two teams work together and share information, not only will they decrease the likelihood of duplicating efforts, they’ll be able to improve your risk management process.
While these two groups may feel threatened by each other’s work, says Scott Hood, strategy, risk, and assurance partner with Rochdale Paragon Group, “their roles are complementary, and they should be working together.”
Hood will address the CUNA Governance, Risk Management, and Compliance Leadership Conference in Nashville Sept. 23-25.
How is the role of ERM expanding?
Scott Hood: Credit unions have been expanding the role of ERM for the last five to six years. Initially, they considered ERM to just include the identification and assessment of the most significant risks in the organization, the enhancement of procedures used to mitigate those risks, and the use of that information in the strategic planning process.
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