A brief history, rationale and an overview of its advantages
Our proprietary Enterprise Risk Management System (ERMS) is designed to provide the transparency necessary for Russell Investments to effectively manage its risks. ERMS enables the use of one comprehensive system for regulatory, risk oversight and portfolio management activities without sacrificing accuracy, flexibility or transparency. Having accurate, timely and comprehensive visibility of one’s "bets," whether taken as a principal or a fiduciary, is the foundation from which virtually all basic risk and portfolio management activities are conducted.
This paper provides insights into the catalysts that drove the ERMS creation as well as the rationale for its design. The advantages of ERMS are summarized in the Appendix.