The main motive of enterprise risk management for financial service managers is to help them make business decisions that contemplate all types of risk such as operational risk, financial and event risk.
Financial institutions are experiencing industry specific strategic and operational problems, which paves the way for ERM solution. Members of the financial sector strongly believe that ERM will help them address their major strategic challenges, which ranges from capital management and allocation to mergers and acquisitions. Members of the financial sector understand that ERM is an integrated or holistic approach to managing risk and they believe that the approach will allow them to meet all strategic challenges.