Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization's objectives (threats and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring process. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall.
ERM can also be described as a risk-based approach to managing an enterprise, integrating concepts of internal control, the Sarbanes–Oxley Act, data protection and strategic planning. ERM is evolving to address the needs of various stakeholders, who want to understand the broad spectrum of risks facing complex organizations to ensure they are appropriately managed. Regulators and debt rating agencies have increased their scrutiny on the risk management processes of companies.
According to Thomas Stanton of Johns Hopkins University, the point of enterprise risk management is not to create more bureaucracy, but to facilitate discussion on what the really big risks are.[1]
^Thomas Stanton (Feb 18, 2017). "Enterprise Risk Management". YouTube. TEDxJHUDC. The whole point of enterprise risk management is not to create another layer of bureaucracy, but rather to have your chief risk officer facilitate the conversations and then the discussions about priorities – what are the really big risks we've got to grapple with.
and 28 Related for: Enterprise risk management information
Riskmanagement is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed...
and market risks. Within non-financial corporates, the scope is broadened to overlap enterpriseriskmanagement, and financial riskmanagement then addresses...
adoption of IT within an enterprise or organization IT riskmanagement can be considered a component of a wider enterpriseriskmanagement system. The establishment...
balance risk and reward. In more complex organizations, they are generally responsible for coordinating the organization's EnterpriseRiskManagement (ERM)...
A key risk indicator (KRI) is a measure used in management to indicate how risky an activity is. Key risk indicators are metrics used by organizations...
Enterprise legal management (ELM) is a practice management strategy of corporate legal departments, insurance claims departments, and government legal...
material misstatements in financial records Gregory Monahan (2008). EnterpriseRiskManagement: A Methodology for Achieving Strategic Objectives. John Wiley...
or community enterprise, association, group or individual." Accordingly, the general scope of ISO 31000 – as a family of riskmanagement standards – is...
RiskManagement Professional (RIMS-CRMP) is a enterpriseriskmanagement (ERM) focused credential offered by RIMS, the Risk and Insurance Management Society...
practice, a lot of EnterpriseRiskManagement (ERM) programs downplay or ignore strategic risks. The importance of strategic risk has risen along with...
Within project management, riskmanagement refers to activities for minimizing project risks, and thereby ensuring that a project is completed within...
Thomas L.; Shenkir, William G.; Walker, Paul L. (2002). Making enterpriseriskmanagement pay off. FT Press. ISBN 9780130087546. Retrieved 2009-07-10. {{cite...
health insurance, retirement and pensions, investment and finance, enterpriseriskmanagement, and general insurance (property and casualty) insurance. The...
traditional roles, actuaries also work in the fields of riskmanagement and enterpriseriskmanagement for both financial and non-financial corporations. Actuaries...
riskmanagement (ORM) is defined as a continual recurring process that includes risk assessment, risk decision making, and the implementation of risk...
accountability for IT risk management RG2.2 Coordinate IT risk strategy and business risk strategy RG2.3 Adapt IT risk practices to enterpriserisk practices RG2.4...
risks and solvency, known as the ORSA, is the centerpiece of this plan. In an operational way, the ORSA is part of global process of enterpriserisk management...
Australasia and New Zealand. The Risk Maturity Model is an online assessment tool for enterpriseriskmanagement (ERM). Developed in 2006 by LogicManager...
practice, or by insurance. Enterpriseriskmanagement includes the methods and processes used by organizations to manage risks and seize opportunities related...
environments in which the organization operates. Strategic management provides overall direction to an enterprise and involves specifying the organization's objectives...
Retrieved November 20, 2007. "Taking the risk out of riskmanagement: Holistic approach to enterpriseriskmanagement". Strategic Direction. 32 (5): 28–30...
develops guidelines for businesses to evaluate internal controls, riskmanagement, and fraud deterrence. In 1992 (and subsequently re-released in 2013)...
Global Information