In today’s continually changing business environment, the board, or its risk committee and senior management, are challenged to:
- Set entity’s risk governance posture and tone;
- Establish specific strategic objectives and interrelated risk appetite; and
- Implement and maintain a formal risk management system sufficient to identify and manage risks.
The interaction of an organization's risks and potential impact on its earnings, capital, and strategic plans necessitate risks to be assessed, evaluated, and managed across the entire entity.
Wipfli’s experienced team assists boards and senior management to establish or enhance an appropriate risk management system to meet the organization’s strategic objectives. Through a tailored approach, Wipfli professionals utilize a combination of resources to create a program to:
- Establish and reinforce the entity’s risk culture;
- Articulate and monitor adherence to the organization’s risk appetite; and
- Develop and utilize an enterprise-wide risk management system to identify, measure, monitor, and control risks.
The Wipfli ERM team works closely with organizations to identify, develop, and integrate key risk governance components and related reporting systems to facilitate timely identification, measurement, monitoring, and controlling of risks.
Model Validation - Assessing the Tool
In today’s business world, quantitative analysis models are widely utilized to improve business decision making. Model utilization covers a wide range of focus areas such as credit underwriting, interest rate risk exposure, valuing assets, and even general risk assessments. Unfortunately, the usage of models introduces its own set of exposures related to the model. Model risks may occur at any time in the model validation process, starting with the design and development of the model through implementation and usage.
Wipfli’s experienced team utilizes a systematic analytical model validation approach. The core elements of our validation activities include:
- Evaluation of the model’s conceptual soundness, including developmental evidence
- Ongoing monitoring, including process verification and benchmarking
- Outcomes analysis, including back-testing
Featured Thought Leader
Sara Mikuta, CPA, CGMA, CIA, CRMASara brings over 30 years of experience and leads a team responsible for the development and delivery of internal audit services, regulatory compliance examination services, loan portfolio services, information technology services, and fiduciary and trust services. Her depth of knowledge and experience provides her clients with the necessary tools to be successful in their endeavors.
Robert D. Cedergren, CPA, CGMA, CITP, CISA, CISSP, CISM, CGEIT, CCSFPBob is the leader of Wipfli’s risk advisory services practice. Leveraging his 20+ years of experience, Bob provides consulting services to clients in the areas of risk management and is a frequent speaker and author on risk management-related topics including risk assessments, business continuity planning, and management of internal controls.
Torpey White, CPA, CITP, CISA, CGMATorpey has more than 25 years of experience in public accounting and the private sector. He applies his extensive experience in risk advisory services to assist clients in protecting and tailoring their business environment to mitigate risk, identify trends, increase efficiencies, and gain a competitive advantage.