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Excellent 
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tolerances 
• Advanced implementation, development and execution of ERM parameters 
• Consistently optimizes risk adjusted returns throughout the organization 
Strong 
• Clear vision of risk tolerance and overall risk profile 
• Risk control exceeds adequate for most major risks 
• Has robust processes to identify and prepare for emerging risks 
• Incorporates risk management and decision making to optimize risk adjusted 
returns 
Adequate 
• Has fully functioning control systems in place for all of their major risks 
• May lack a robust process for identifying and preparing for emerging risks 
• Performing good classical “silo” based risk management 
• Not fully developed process to optimize risk adjusted returns 
Weak 
• Incomplete control process for one or more major risks 
• Inconsistent or limited capabilities to identify, measure or manage major risk 
exposures 
Source: Standard & Poor!
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Enterprise Risk Management Framework
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