Enterprise risk management is a scalable, holistic approach to improved decision-making that consolidates and organizes risk information from across an organization. No longer limited to a risk manager’s monthly report, ERM is becoming a fundamental part of business success. By embracing ERM and creating a risk management culture, organizations can drive business performance, innovation and growth, while protecting company reputation and shareholder value. For many businesses, demonstrating that they have a clear, auditable risk management process has become a critical factor in winning new business.
Unfortunately, too many business leaders still perceive risk management as a complex undertaking. In reality, there are six simple steps to follow for effective risk management, regardless of the industry, vertical, size or scope of the project or company.
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