Enterprise Risk Management (“ERM”) is a strategic business discipline that supports the achievement of an organization’s objectives by addressing the full spectrum of its risks and managing the combined impact of those risks as an interrelated risk portfolio.
ERM represents an evolution beyond previous, traditional approaches to risk management insofar as it encompasses all areas of organizational exposure to risk including, but not limited to, financial, operational, technology, compliance, governance, strategic and reputation/brand. It also prioritizes and manages exposures as an interrelated risk portfolio rather than as individual “silos.”
Additionally, ERM evaluates the risk portfolio in the context of all significant internal and external environments, systems, circumstances, and stakeholders, and recognizes that individual risks across the organization are interrelated and can create a combined exposure that differs from the sum of the individual risks. ERM then provides a structured process for the management of all risks, whether those risks are primarily quantitative or qualitative in nature; and seeks to embed risk management as a component in all critical decisions throughout the organization.
Our philosophy with respect to our ERM practice is rooted in tailoring a traditionally complex paradigm and process – historically born of the finance and banking industry following BASEL I and II targeted, in large part, to address regulatory compliance – and adapting such to a variety of industries and endeavors wherein the fundamental principles of ERM very much apply. These principals center on risk identification, quantification, communication and tracking using a system that is both well suited for the organization’s industry, management structure and culture.
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See Below for How It Works:
Perform a thorough review of all of the Client’s provided documents.
Conduct these interviews to asses our Client’s risk tolerance/concerns and overview of responsibilities/rolls in the organization.
Perform a physical evaluation (select locations)
Perform analysis of collected information
Initial population and ranking of risks
Run a whiteboard review exercise and ranking
Key Stakeholders from all department/operational functions form the ERM Committee
Connecting Silos of Risk
Every quarter the ERM COmmitte gathers to review and manage the Risk Registry