Enterprise Risk Management Traditional approach Manage each type of risk separately(silo approach) a Enterprise risk management approach Manage all risks in a unified framework Focus more on overall firm risk Some firms have established a new position chief risk officer2 Enterprise Risk Management ◼ Traditional approach: Manage each type of risk separately (silo approach) ◼ Enterprise risk management approach: ◼ Manage all risks in a unified framework Focus more on overall firm risk Some firms have established a new position: chief risk officer