Enterprise Risk Management
Enterprise Risk Management (ERM) includes the methods and processes used to manage risks and seize opportunities related to the achievement of their objectives. ERM refers to the practices an organization uses to provide the framework for risk management, which involves the identification, assessment and prioritization of risks. The mission of ERM is to reduce loss, provide a safe work environment, eliminate hazards, determine a response strategy and monitor progress. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall.
Given the broad spectrum of risks associated with managing enterprises of all sizes, leaders and managers need to see all aspects of exposure across an organization. This broader view of the risk environment within an organization helps managers to mitigate risk, implement policies, and take precautions that reduce risk to employees and the public.