DEFINITION AND SCOPE OF ENTERPRISE RISK MANAGEMENT
- Fast-changing business scenario, uncertainty arising from global events, disruptive competition, and protectionist agenda of cultural majorities and volatility of commodity and currency prices creates stress and complexity in managing businesses.
- Gradually, these events start playing on the minds of stakeholders. The occurrence of risk events coupled with their poor handling impacts organisational performance. Enterprise Risk Management (ERM)/ Business Risk Management (BRM) in a structured form assists organisations in preparing for the worst-case scenario, while aspiring to be “better, faster and cheaper”.
- ERM is arguably the only effective tool in contemporary times that assists in the evaluation and bridging of the gap between uncertainty and performance in organisations; also a simplified approach to problem solving and making the organisation nimble footed. Iconic entities that feature in the top global rankings consistently practice integrated risk management.
- Enterprise risk management (ERM) is a leading best practice approach to effectively manage and optimize business events that have the potential to impact business objectives or risks, enabling a company to determine how much uncertainty and risk are acceptable to an organization.
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