Enterprise Risk Management (ERM) is the development of a corporate culture, risk appetite, language, and process to manage and measure risk. Risk management includes identifying, analyzing, assessing, mitigating or accepting risk, and then monitoring risk to ensure it is within the overall corporate risk appetite.
By implementing a risk program you can reduce risk, increase profitability, increase staff efficiency, and define accountability. You then monitor and measure the risk / reward to determine if it enhances shareholder value.
Are these your key Operating risks in 2017?
1. Cyber risk and data security
2. Organizational change
3. IT failure
4. Conduct risk (reputation / culture)
5. Geopolitical risk
You need to be compensated for the risks you take.
A risk assessment allows you to determine how much and the types of risk being taking. The process allows you to monitor and manage that risk over time.
A consistent approach to risk management includes the Board defining the organization's risk appetite and the framework on which to manage and monitor that risk.
A risk database is a great start on developing a corporate memory for the organization.
Gary S. Austin MBA Consulting Director / Owner Phone: (843)957-5263 E-mail: gsaustin@goABCG.com(revised 11/28/2017)
Gary S. Austin MBA
Consulting Director / Owner
E-mail: gsaustin@goABCG.com(revised 11/28/2017)