Title: Enterprise risk management in financial intermediation

Authors: Stuart I. Greenbaum

Addresses: Olin Business School, Washington University in St. Louis, Campus Box 1133, One Brookings Drive, St. Louis, MO 63130-4899, USA

Abstract: For financial intermediaries, especially those that are public companies, enterprise risk management (ERM) is a paradigm shifting idea. In this paper, I provide an interpretation of ERM that is both historical and analytical. The origins of the idea are examined along with the appropriate definition. A distinction between risk management and risk mitigation is clarified, the value-creating potential of ERM is explained and an ERM paradox is set forth.

Keywords: enterprise risk management; ERM; core risk; ancillary risk; financial intermediaries; risk mitigation; value creation.

DOI: 10.1504/IJBAAF.2012.045510

International Journal of Banking, Accounting and Finance, 2012 Vol.4 No.1, pp.77 - 89

Received: 13 Jul 2011
Accepted: 02 Sep 2011

Published online: 14 Feb 2012 *

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