Over the past decade, enterprise risk management (ERM) has become an established practice in virtually all large business organizations, including a majority of banks and other financial institutions. Regulatory expectations coupled with the harsh realities of the recession combined to encourage financial services organizations to devote significant time and resources to implementing structured processes for assessing and mitigating risks as well as identifying and seizing opportunities. According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) “Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and...