Enterprise Risk Management: Best Practices for Tomorrow’s Executives Is Essential Insights

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 (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. 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, Sarbanes–Oxley Act, 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.

Posted in Risk Assessment by Jeffrey Friedman. Comments Off on Enterprise Risk Management: Best Practices for Tomorrow’s Executives Is Essential Insights
Risk is one of the most overlooked areas in business in spite of the fact that it is clear to most business owners that operate any business involves a certain level of risk. Prudent business owners take care to minimize the risk, just as you would in any other type of risky venture you undertake. A good risk management system is a continuous process of analysis and communication.  The Risk Alliance is a group brought together to address and assist business owners with managing risk.