Enterprise risk management (ERM)

Enterprise risk management (ERM) is a challenge for organisations of all sizes. Extracting real value from investments in this area remains difficult, but that doesn’t mean it’s not a critical component for businesses. Organisations must recognize that ERM is a fundamental management discipline that helps them navigate the evolving landscape they operate in, while facilitating meaningful discussions on managing overall risk exposure across their enterprise.

Although enterprise risk management has been a recognised management concept for several decades, many organisations still struggle to realise the full benefits of their investments in ERM systems. Many modern businesses fail to address and implement solutions to ever-present issues such as global health, technological and digital disruption, political instability, macro-economic shifts and the impact of climate change.

Enterprise risk management (ERM) is a strategic approach to holistically examine the risk management of an organisation. The ERM framework is implemented from the top down, with the goal of identifying, evaluating and preparing for potential losses, threats, risks, and other possibilities for damage that could majorly disrupt operational activities.

The last decade has demonstrated that even smaller businesses must consider measured and calculated responses to global risks. Effective enterprise risk management (ERM) is an integral part of good governance and should be seen as part of the bedrock of all successful organisations. If it goes wrong, the ramifications can be deeply damaging. Where you get it right, you can become more efficient, more effective and better at delivering what your customers want.

Ratings agencies, listing exchanges and regulators around the world expect management teams to identify, assess and prudently respond to risks. They also increasingly expect the board of directors to share in management’s responsibility for assessing and managing risk, including publishing a risk management strategy in annual reports.

Whether you are a large or mid-market organisation, we can help you design and implement an enterprise risk management solution tailored to your specific needs. This will help enhance and improve processes for managing strategic, operational, financial, regulatory and compliance risk. And, unlike many systematised approaches on offer, it will not increase bureaucracy.