Placing a Value on Enterprise Risk Management

By KPMG LLP · 2009 · CFE101-100-25

Study guide: Exam CFE-101

A KPMG advisory white paper, copyright 2009, on how to put a quantifiable value on an enterprise risk management (ERM) program. It argues that good ERM programs enhance company value through reduced costs, decreased variability in financial results, enhanced market reputation and improved business decision-making, and it sets out an ERM program value model and KPMG's own ERM framework.

On the syllabus

• Exam CFE-101 — CFE101-100-25: Placing a Value on Enterprise Risk (the syllabus's title; the study note list prints it as Placing a Value on Enterprise Risk Management); outcome 1.1a.

An Approach to Valuing ERM

Capital Costs

Governance/Compliance Costs

Hedging or Insurance Costs

Investment Opportunities

Avoiding Losses

Earnings Variability

KPMG's Enterprise Risk Management Approach

• Governance
• Assessment
• Quantification and Aggregation
• Monitoring and Reporting
• Risk Control and Optimization

Conclusion

Sources

• Placing a Value on Enterprise Risk Management (KPMG LLP, 2009), as hosted by the Society of Actuaries in Ireland — the document: title page, copyright notice, the introduction for the lead, and its headings and the five elements of KPMG's ERM framework
• CFE 101 Syllabus, Nov 2026/Mar 2027/Jul 2027 (SOA) — the reading code and the learning outcome
• CFE 101 Study Note appendix (SOA, 2026) — lists CFE101-100-25 as Placing a Value on Enterprise Risk Management