Among the challenges that are critical for companies today is currently determining how much risk they can handle to create value. Research suggests that six out of ten executives lack confidence in their company’s risk management practices. If you want to be one of the four who are confident in tackling risk, keep reading and improve your understanding of ERM. Enterprise Risk Management (ERM) is defined as the process of planning, organizing, leading and controlling the activities of a company to be able to decrease the effects of risk on its own capital and earnings.
ERM is a new approach Management which differs from conventional ones concerning emphasis, objective, scope, focus and program. Under the new strategy, the uncertainties that could affect both intangible and tangible resources of this organization are taken into consideration. Hence, ERM can help you align your organization’s strategies, people, procedures, knowledge and technology so the organization is well equipped to deal with risk.
By addressing the need for again Control measures, bizsafe training ERM helps your organization handle and anticipate uncertainties. Additionally, it enhances the value of the enterprise from the three ways.
- Creates sustainable competitive advantage.
- Optimizes risk management price.
- Improves business performance.
The end result is a risk that is robust Management procedure.
You must remember that ERM is a Journey. It represents a sea change in behavior and mindset. As with any other significant change, the adoption of ERM is essentially a process of building awareness, implementing and driving possession throughout the organization. What makes it harder is that in almost any organization viewpoints about risk will be different.