Enterprise Risk Management (ERM)

Enterprise Risk Management (ERM) is a comprehensive approach to identifying, assessing, and managing the risks that a company faces across its entire organization. ERM integrates risk management into all aspects of a company’s operations, from strategic planning to daily processes, helping businesses make informed decisions and mitigate potential threats. ERM covers various types of risks, including financial, operational, strategic, and compliance risks. ERM aims to create a structured and consistent framework for managing risks, ensuring that organizations are better prepared to achieve their objectives and protect stakeholder value.

Example

A multinational corporation implements ERM to identify and manage risks related to supply chain disruptions, regulatory changes, and market volatility.