What Your Company Gains From a 

Robust ERM Program

Traditional risk management hones in on specific activities or areas in the organization. Enterprise risk management (ERM) provides an evolved approach to risk management, considering risk from a strategic enterprise level. Companies with a solid approach to ERM develop a broader understanding of risk and are better at managing difficult circumstances.

An effective ERM program provides the following benefits:

• Improves the ability to achieve strategic objectives by aligning risk appetite with corporate strategy
• Provides insights that can improve the effective deployment of resources
• Reveals opportunities because ERM recognizes the upside of risk
• Reduces operational uncertainty with improved risk response plans
• Embeds risk-aware decision making into corporate culture
• Creates a competitive advantage through preparedness and reduced volatility 

An effective ERM program generates value for your organization. So where do you start? Take advantage of your organization's current strengths and resources. Start simple and build your plan over time.

Here are four considerations for implementing an effective ERM program:

1. Get commitment from the top. The program must be enterprise wide and perceived as important throughout the organization.
2. Begin to build your program in steps. Don't make the process overly complex; you can enhance the program each year.
3. Focus on risks that may significantly impact your organizational goals. Don't try to boil the ocean.
4. Enhance efficiency by building the ERM program around current processes and risk management practices.