ERM is often associated with strategic risk management, or integrated risk management, or holistic risk management, all of which emphasize a comprehensive view of risk and risk management. It is a movement away from the silo approach of managing different risks separately within an organization, and the view that risk management can be a value-creating, in addition to a risk-mitigating, process.
ERM has become a hot topic in the current business climate. The aim of ERM is to identify and manage risk, align risk appetite with the organization’s strategy, enhance risk response decisions, and improve allocation of resources.
ERM is recognised as a strategic decision support framework for management as it improves decision-making at all levels of an organization. Because ERM is a methodology, a process that is inherently a collaborative one that requires teamwork among many disciplines within an organization, it can be applied to the entire organization's risk profile.
One of the main benefits that ERM brings to a company is the ongoing involvement and ownership by the company's risk team.
ECCS can help your organization develop, integrate, implement, and monitor your ERM, and support your organization’s risk team in achieving its ERM goals.
Enterprise Risk Management (ERM) is defined as: the discipline by which an organization in any industry assesses, controls, exploits, finances, and monitors risks from all sources for the purpose of increasing the organization’s short and long-term value to its stakeholders.