CERP case studies
CERP · Put your knowledge to work in context.
The Certified Enterprise Risk Professional (CERP) is one of the professional certifications conferred by the American Bankers Association, sitting alongside the CRCM, CTFA, CFMP, CAFP and CISP in ABA's certification family. ABA frames the program as a way to differentiate yourself from the competition and to demonstrate expertise in the enterprise risk field, and its marketing materials position the credential around credibility that managers and employers recognize, backed by an ongoing commitment to learning. The CERP case studies are 5 cases and about 3,479 words.
1The Product That Outgrew Its Appetite: Fraud Losses, ROE and the 'Priced In' Argument
A 28bn-asset bank launched a real-time payments product seven months ago. The board's risk appetite statement reads: 'aggregate operational losses from fraud, error and processing failure shall not exceed 40m in any rolling 12-month period; there is no appetite for material regulatory breach.' Actual fraud losses are 4.2m per month and have grown roughly 12% month on month; recovery is 22% against a 60% plan assumption.
732 words, about 4 min2Three Units, One Sponsor: The Aggregation Failure Behind a Clean Limit Report
Three lending units of a bank with 1.2bn of Tier 1 capital report monthly to the group risk function. Each applies a 10%-of-capital single-obligor limit at unit level.
695 words, about 3 min3An LCR of 128% That Cannot Survive Its Own Funding Structure
A bank reports an LCR of 128% and an NSFR of 112%. HQLA is 4.1bn against 3.2bn of 30-day net outflows.
658 words, about 3 min4The 'Medium' Rating for a Critical Provider With a Fictional Recovery Plan
A bank outsources core banking and card authorisation to a single SaaS provider. The last quarter brought three outages totalling nine hours; the worst, 11 hours, exceeded the four-hour recovery time objective.
685 words, about 3 min5A Comfortable Capital Trough Built on a Benign-Calibration Model
A bank's ICAAP projects a CET1 trough of 9.8% under its adverse scenario, against an 8.0% regulatory minimum and a 9.0% board buffer, and management concludes the capital plan is adequate. The adverse scenario is GDP -3.4%, unemployment 9.5% and house prices -22%.
709 words, about 4 min