enterprise risk management
Enterprise risk management (ERM) is a structured, consistent, and continuous risk management process applied across an entire organization that allows companies to better understand and address material risks. Corporate boards, ratings agencies, and regulatory bodies are among the key drivers for advancing ERM. The implementation of ERM can facilitate better capital resource allocation decisions, increase operational efficiency, and enhance a company’s risk control efforts to support critical strategic, compliance, and governance initiatives. Bold&Digital can help your organization apply an integrated approach to identifying and assessing business-critical risks, evaluating existing risk management infrastructure elements, and constructing continuous, in-depth ERM processes.
Define the Context
To execute risk management, it is critical to define the context for the decision that the risk management effort will support.
Identify Potential Risk
There is a need to consider a wide variety of risks to support decision making
Assess and Analyze Risk
The purpose of this step is to assess the identified risks and analyze the outputs of the assessment.
The objective of risk analysis is to provide decision makers with a structured way to identify and choose risk management actions.
Decide Upon and Implement Risk Management Strategies
Risk management entails making decisions about best options among a number of alternatives in an uncertain environment.
Evaluation and Monitoring
This phase includes the evaluation and monitoring of performance to determine whether the implemented risk management options achieved the stated goals and objectives.