Standard & Poor’s To Begin Evaluating Enterprise Risk Analysis

On May 7, 2008, Standard and Poor’s Announced that they address enterprise risk management at part of their ratings: Standard & Poor’s To Apply Enterprise Risk Analysis To Corporate Ratings. (.pdf)

Ultimately, we will enhance transparency by providing investors and issuers our views of a management team’s ability to understand, articulate, and successfully manage risk. The benefits of the ERM enhancement will be to make the process of forming our rating opinions more forward looking, achieve finer differentiation among ratings, and facilitate construction of “what if” forecast scenarios.

S &P will look toward a company’s adoption of the COSO standards or the AS/NZS 4360 standards. But S&P will not make them a prerequisite for enterprise risk management nor sufficient evidence of sufficient risk manangement.


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One Response to Standard & Poor’s To Begin Evaluating Enterprise Risk Analysis

  1. Alex Dali October 27, 2011 at 12:00 pm #

    Two years ago, it was a hot topic : Impact of S&P’s Enterprise Risk Management Assessment on Risks & Rankings”.
    Any new development from S&P on their ERM module ?
    This is important because, now that COS is getting discredited, the only global reference left is ISO 31000.

    I would like to invite you to join my group on LinkedIn.

    Alex Dali
    Moderator of the ISO 31000 Risk Management Standard group