Second Pillar Consulting works with banks to develop, evaluate, or enhance their Enterprise Risk Management (ERM) programs by understanding how risk is unique to their organization and how it impacts their capital requirements. We facilitate communication about risk throughout the management layers to achieve an enterprise-wide risk perspective that allows banks to respond holistically to changes in the risk environment. Our consultants are industry-recognized experts who transfer academic knowledge into practical solutions using a staged approach. Read our white paper about our staged approach to developing ERM Programs.


Second Pillar Consulting has assisted banks of all sizes with ERM Programs and offer a full suite of services.

  • Risk Analysis - We use our proprietary web-based Risk Survey and Risk Inventory Software to reach deep into the organization to discover and report Risk Perspective that we translate into a Risk Hierarchy.
  • ERM Gap Analysis - We compare a bank's current practice to industry best practices and recommends specific changes to the ERM Program to address gaps.
  • Risk Appetite and Governance - We work with senior management and the board to create a risk appetite statement using our customized template that facilitate creating a comprehensive statement.
  • Risk Monitoring - We provide services to support the risk appetite process including establishing a monitoring program that includes working with senior management and the board to ensure they approve of the risk appetite statement and receive appropriate reports to support the ongoing monitoring of risk.
  • Risk Management Committee - We have helped several banks establish their Risk Management Committees, including developing charters, committee structure, and responsibilities. We help facilitate initial meetings by assisting with preparation of the agenda, dashboards, and presentation materials.

Going beyond defining and measuring risk, Second Pillar Consulting has years of experience helping banks design strategies to effectively manage risk, including:

  • Capital Adequacy Plans - We have years of experience creating capital adequacy plans that align a bank's strategic plan with future capital requirements.
  • Balance Sheet strategy and Risk Adjusted Performance Measurement - Second Pillar Consulting can help your bank establish a risk based strategy that is allows you to develop a balance sheet strategy in line with your strategic plans.
  • Stress Testing and Portfolio Stress Testing - Using our in house models and quantitative expertise, we design and build custom stress testing models to define a bank's risk to ensure overall capital adequacy.
  • Policies and Procedures - Second Pillar Consulting has years of experience in assisting banks revise or create policies and procedures that support safe and sound risk management and banking practices.

As recognized leaders in ERM, our consultants have conducted training for all management levels, including the board, officers, and risk management staff. We can provide full day ERM educational programs with breakout sessions designed to kick start your ERM program. During the breakout sessions staff discuss the current ERM strengths and weaknesses of the bank. Second Pillar developed and teaches the Enterprise Risk Management for Community Banks course for the Risk Management Association. In addition, we have in-house training courses for your board or staff that can be customized. The topics include Introduction to ERM, Interest Rate Risk, Liquidity Risk, Managing Credit Risk, and Managing the Overhead Risks. Each course is designed to be hands on and provide attendees with opportunities to ask the instructor questions regarding the management of risk and best practices. This information is then discussed in a joint forum facilitated by the instructors and becomes the foundation of the banks risk inventory and ERM gap analysis.


Risk Survey and Risk Inventory Software - Second Pillar Consulting's proprietary software was designed to perform an internal survey of current ERM practices and to reveal any gaps. The tool is also designed to better understand and communicate information about risk from the bottom up and top down within an organization. Using our Risk Inventory Tool bank management is able to identify emerging risks and establish a rank ordering of the top risks.

Please contact us to discuss Second Pillar Consulting creating a custom ERM solution for your organization.

Like us on Facebook  Follow us on LinkedIn

Bill Nayda:
(804) 432-1629
11174 Lake Shore Ct.,
Glen Allen, VA 23059