Enterprise Risk Management

You have seen it before. A respected company suffers financial losses and public embarrassment when problems with governance, compliance, controls or other key issues suddenly come to light. And executives, board members and shareholders are left with a troubling question: What went wrong?

The fact is, many organisations falter – or even fail – due to undetected shortcomings in the way they manage risk. Directors and management are attempting to deal with today’s more numerous and vastly more complex risks using disparate processes developed over time as needs arose.

Today’s complicated and faster-paced business environment demands a more comprehensive approach to risk management – one that enables people at every level of the organisation to:

• systematically assess and respond to events or uncertainties that could reduce stakeholder value and,
• to seize opportunities to improve performance and create value.

The solution? Enterprise Risk Management (ERM)

Building Risk Management into the fabric of your enterprise

ERM is a structured and disciplined approach, applied throughout an enterprise, which is designed to identify and assess risks that may affect the entity, and to manage the risks to be within the entity’s risk appetite, to provide reasonable assurance that the entity’s objectives will be achieved.

ERM integrates risk management into activities at all levels of an organisation, from enterprise-level activities such as the strategy setting process, to business unit activities and business processes.