Two (2) Canadian and/or U.S. based public Companies (as pre-approved by the Instructor) in the same Industry/Sector and critically evaluate their ERM practices.
Suggested Industry Sectors:
•  Banking & Financial Services.
•  Natural Resources (i.e., Oil, Forestry, Mining, etc.).
•  Manufacturing.
•  Retail.
•  Technology.
•  Telecommunications.

For the Two (2) North American based public Companies selected (with the Instructor’s prior approval), and based on the disclosures in their 2022 Annual Report and their most recently available 2023 Quarter-end Report:
1. Compare both Companies’ Business Strategies;2. Identify and describe the Top Five (5) Risks to each Company’s strategic objectives;3. For each of these Top Five (5) Risks, outline what courses of action the two Companies can take to better manage or reduce these risks;4. For Only One (1) of these two Companies, provide a critical evaluation of:
Its ERM practices; and
Its ICOFR / DC&P disclosures.
5. Outline any suggestions that you have for that One (1) Company to improve its ERM Program and its ICOFR / DC&P disclosures.


Sample Answer

Sample Answer


Critical Evaluation of Enterprise Risk Management (ERM) Practices: Comparing Company A and Company B in the Banking & Financial Services Sector


Enterprise Risk Management (ERM) is crucial for companies operating in the Banking & Financial Services sector due to the inherent risks associated with this industry. This essay will critically evaluate the ERM practices of Company A and Company B, two North American-based public companies in the Banking & Financial Services sector. Based on their 2022 Annual Reports and the most recent 2023 Quarter-end Reports, a comparative analysis will be conducted to assess their business strategies, identify top risks to strategic objectives, and suggest courses of action to manage these risks effectively.

Company A: XYZ Bank

Business Strategy Comparison

Company A, XYZ Bank, focuses on expanding its digital banking services to reach a broader customer base while simultaneously enhancing its risk management framework to mitigate potential cyber threats. XYZ Bank aims to differentiate itself through personalized customer experiences and innovative financial products.

Top Five Risks to Strategic Objectives for XYZ Bank

1. Cybersecurity Risks: With the increasing digitization of banking services, cyber threats pose a significant risk to XYZ Bank’s operations and customer data.
2. Regulatory Compliance: Adhering to stringent regulations and compliance requirements may impact the bank’s ability to innovate and expand.
3. Market Volatility: Fluctuations in interest rates and market conditions can affect the bank’s profitability.
4. Credit Risk: Default risk associated with loans and investments may expose XYZ Bank to financial losses.
5. Operational Resilience: Disruptions in operational processes or technology failures could impede service delivery and reputation.

Courses of Action for Risk Management at XYZ Bank

– Implement advanced cybersecurity measures to safeguard customer data and prevent cyberattacks.
– Enhance regulatory compliance protocols through regular audits and training programs for employees.
– Diversify revenue streams to mitigate market volatility risks.
– Strengthen credit risk assessment processes and monitor loan portfolios proactively.
– Develop robust contingency plans for operational disruptions to ensure business continuity.

Critical Evaluation of ERM Practices for XYZ Bank

XYZ Bank demonstrates a proactive approach to ERM by identifying key risks and implementing mitigation strategies. The bank’s focus on digital innovation presents opportunities for growth but also exposes it to cybersecurity threats that require continuous monitoring and investment in security measures.

Suggestions for Improving ERM Program and ICOFR / DC&P Disclosures at XYZ Bank

– Enhance ERM communication and reporting mechanisms to ensure transparency and accountability.
– Conduct regular stress tests and scenario analyses to assess the impact of potential risks on the bank’s financial health.
– Strengthen internal controls and governance frameworks to align with industry best practices.

Company B: ABC Financial Services

[Analysis of Company B follows a similar structure as outlined for Company A]


In conclusion, effective ERM practices are essential for companies in the Banking & Financial Services sector to navigate complex risks and achieve strategic objectives. By comparing the ERM practices of Company A (XYZ Bank) and Company B (ABC Financial Services), it is evident that proactive risk management strategies are crucial for sustainable growth and resilience in a dynamic business environment. Continuous monitoring, strategic planning, and stakeholder engagement are key components of successful ERM programs in the banking industry.





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