Enterprise Risk Management: Standard & Poors To Apply Enterprise Risk Analysis To Corporate Ratings

ERM will add an additional dimension to the analysis of management and corporate governance, creating a more systematic framework for an inherently subjective topic. Ultimately, the authors will enhance transparency by providing investors and issuers the 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 the rating opinions more forward looking, achieve finer differentiation among ratings, and facilitate construction of "what if" forecast scenarios.