FAQ - pg 3 | chimeraglobal

11

• We don’t use a common language for risk discussions

Establish a framework and lexicon for risk nomenclature in your organization through working groups from each significant business unit and shared service function

12

• There’s a variety of tools already for risk assessments; which should I use?

It depends on the number of respondents; your corporate culture and your organizations familiarity with risk management. Can include face to face assessments (which facilitate education and guidance; encourage discussion and allow for data collection); they can be automated surveys; they can be group interviews. Key is tailoring for the audience and their familiarity with the RM function.

13

• It’ll take too long to implement

The timeline is dependent upon the organizations intent to use the ERM risk results and willingness to invest in further Risk Management activity. Recommendations generally fall into short (<12 months) or longer term objectives.

14

• We aren’t sure who should own “ERM” processes in our organization

Risks are primarily owned by the front line management with oversight from independent risk / compliance / management functions. Everyone can own ERM. ERM processes can bring together cross-disciplinary groups, allowing for formal and informal cross-pollination. In addition to allowing people to see how others approach problems, their participation in a casual interchange of ideas may also spur new ideas.

15

• Why all the interest now?

Executives and boards of directors want to take a more disciplined approach to identifying, analyzing and managing risk. They have less tolerance to overall volatility and surprises in the wake of global financial challenges in the last few years. They all need access to consistent, reliable information about emerging risks, trends, compliance controls, security measures and information protection. This information makes compliance easier by quickly letting regulators/customers know that the company is fulfilling its obligations. It also makes it possible for senior executives to determine how much risk the company is willing to take and then set policy accordingly.

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