ENTERPRISEWIDE RISK MANAGEMENT
enterprise-wide risk management ( ERM)
An integrated approach to measuring and managing risks within a financial institution. ERM, as opposed to traditional separate, "silo" based, risk analysis, recognizes that risks are inter-related and often have common drivers. For example, the macroeconomic conditions related to high interest rates impact credit risk in addition to interest rate risk. Moves to ERM are partially driven by the Basel II capital guidelines and related rules issued by national banking regulators. American Banker Glossary