ERM Solutions

Consulting History

Bridge Enterprise Solutions, LLC (BES) was founded to meet the enterprise risk management (ERM) needs of banks and mortgage banking firms. Our objective is to assist these organizations in minimizing gaps between strategy and strategic execution. Our founders have been meeting the ERM consulting and strategic needs of banks and mortgage servicing firms for over 20 years.

We have been successful in delivering risk management solutions to organizations from coast-to-coast. BES assists banks ranging in size from $500 million to $15 billion and mortgage servicers with as few as 14 to as many as 400,000 loans.

We understand the strategic and technical requirements of banking and mortgage servicing, but more importantly we excel at creating simple and customized solutions to meet your ERM needs and make your strategy execution a success.

As leaders in the development and deployment of ERM solutions for over 20 years, we have come to know and expect ERM consulting to deliver immediate and measurable value. Our clients have been strategically planning for years, but they will tell you that ERM consulting through Bridge Enterprise Solutions will multiply the probability of successfully implementing these strategic plans.

ERM Consulting Approach

At BES we take a very practical approach to providing ERM consulting. We believe that every bank and mortgage-servicing firm engages in some form of enterprise risk management. Our approach is to capture and enhance processes and people already in place to make ERM successful quickly without a tremendous upfront investment. In most cases, for less than the cost of a copier we can perform an initial ERM risk assessment, install risk management policies, and create an ongoing enterprise approach to managing and communicating risk.

We keep your initial investment low and your return high. BES has been in the enterprise risk management business before ERM was a known quantity. Our team has developed tool and techniques that work and provide value fast. We don’t charge you to re-invent the wheel. We do bring to you 20 years of hands-on banking and mortgage banking risk management knowledge. Our founders did not learn ERM from a box. We have been using and working through tools in hands on implementation of ERM in banks and mortgage banks where we played key strategic roles. Our BES team will bring this experience to bear fruit in your organization.

Generally, our ERM consulting engagements consist of the following recommended phases:

a. Phase 1 – Our phase 1 approach involves interviews with senior management by our ERM experts. During these interviews we include your personnel in order to begin the ERM knowledge transfer process. These interviews typically occur over a two to three day timeframe depending on the size of the organization and its complexity. The process produces an enterprise risk assessment for your bank, credit union or mortgage servicing operation. This assessment is delivered along with prioritized recommendations for curing business risk exposure. Phase 1 also includes assistance in helping you develop an ERM governance structure, including a risk policy and a recom-mendation on organizational structures necessary to implement ERM. This solution will give your organization a great start down the road of ERM implementation. In this phase, we will also introduce your organization to over 200 key risk indicators for your bank, credit union or mortgage servicing operation. Once you have absorbed our recommendations and the structure required to initially implement Phase 1, we recommend a deeper dive into Phase 2.

b. Phase 2 – This Phase leverages our ERMX software solution. The process involves more than senior management. At this level of review, we now utilize a thorough enterprise risk assessment tool to survey individuals all the way to front-line supervisors. We ask for inherent and residual business risk ratings from your team members. These risk ratings along with interviews of senior management result in a deep investigation of unmanaged enterprise risks. The documentation of high risk areas allows the bank or mortgage servicing operation to dig in and begin to eliminate and minimize risk exposures. The type of ERM governance required to maximize strategy execution also supplements this risk rating. The risk assessment process will take as few as two hours for each person surveyed. The results will add immediate value and help the organization establish strategic priorities and allocate key resources. The software solution provides a simple method for allocating surveys throughout the organization, tracking completion and reporting results by person, department and as a bank or mortgage servicer taken as a whole. In this phase, we will also develop your key risk indicators for the organization into dashboard reporting. These key risk indicators represent information that is already available in the organization. We utilize our technology to help you pull this information together and report it to senior management and the board of directors.

c. Phase 3 – In this Phase, once a clear risk assessment has been established; now it is time to document management’s controls over business risk. These are not your typical dual control and financial reporting controls. We will assist you in providing documentation of your real strategic business risk management controls. The types of controls throughout the organization that assist “business owners” in making the hard decisions. We will work with our staff or yours in order to gather detailed information about these key business risk management controls. Our team will help assess these controls and make recommendations for improvement. The presentation of these controls will help you evaluate how well your management team is really managing risks throughout the organization.

d. Ongoing implementation assistance – We often assist the organization in providing implementation assistance. Whether it is full outsourcing or co-sourcing of the ERM function until the bank or credit union or mortgage servicer is ready to hire and implement the process on their own. Our team may also help identify and train the appropriate person to establish the ERM solution long-term.

Mortgage Servicing Consulting

At BES we have a deep respect for the complexity of mortgage servicing. We have over 15 years of mortgage servicing risk management and direct management experience. Our unique area of servicing risk management consulting expertise is in the origination and servicing of FHA and VA loans and the servicing of Ginnie Mae mortgage-backed securities. We help organizations establish themselves within this market. Our experts help design the infrastructure and processes necessary to appropriately comply with the high standards of FHA and VA servicing. It’s a complex business, but one that can be successful with the appropriate investment in technology, people and processes.