CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » ERM identifies both risk and opportunity
Leadership

ERM identifies both risk and opportunity

Rochdale’s Cannes offers insights on evolving risk environment.

December 6, 2022
Ron Jooss
No Comments
2022_12_Michael-Cannes.
Michael Cannes, senior risk and assurance manager, Rochdale

Michael Cannes, senior risk and assurance manager at Rochdale, shared insights about the risk environment from the perspective of a former credit union manager during the 2022 CUNA Supervisory Committee & Internal Audit Conference in Las Vegas.

Credit unions work within an operating environment that includes events that can identified in an external environment, such as economic trends, regulatory changes, and competition, as well as internal events involving people, processes, infrastructure, Cannes says.

“When these events occur as an organization is pursuing it’s strategic objectives, they become risks or uncertainties,” he says. “Risk is therefore the possibility that an even will occur and affect an organization’s ability to achieve its strategic objectives.”

Risk appetite is the type and amount of risk an organization is willing to take on in pursuit of value. “This almost always involves risk and return trade-offs,” Cannes says.

Cannes uses a Las Vegas analogy to illustrate risk. “If I’m playing blackjack and it’s $25 a hand, that’s much more risk than I want to take. But if there were $1 tables I would be more likely to sit down and play,” Cannes said. “That’s similar to risk appetite. If that risk is lower, you’re much more likely to make organizational ‘bets.’”

‘ERM increases confidence and capabilities around understanding and managing the risks of today.’
Michael Cannes

Organizations use different tools and functions to identify, manage, and control risks, he says. 

The central objective of enterprise risk management (ERM) is to improve the capability and coordination of risk while integrating the output to provide a unified and holistic picture of risk for stakeholders and decision makers, Cannes says.

ERM establishes an organization-wide structure and process to identify both risks and opportunities, including communication, response plans, and creating a collaborative and innovative environment.

“ERM increases confidence and capabilities around understanding and managing the risks of today, while better positioning the organization to leverage opportunities in the future,” Cannes says.

KEYWORDS ERM SCIAC supervisory committee

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • Nussle: Broad classification of ‘junk fees’ in SOTU will hurt consumers

  • ‘Distinctly and uniquely me’

  • Auto lending report shows significant credit union member savings

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us