Friday, April 23, 2010

Enterprise Risk Management

Enterprise Risk Management, or ERM, is a framework, or simply a series of methods and processes, used by organizations to manage risks and seize opportunities related to organizational objectives.

This framework is typically condition based. Usually, it involves identifying particular circumstances or a series of conditions related to an organization’s objectives. Once identified, they are assessed and ordered, often in terms of their likelihood, magnitude of impact or response strategy.

By acting proactively and addressing risks and seizing opportunities, an organization is better able to protect, but more importantly, create value for its stakeholders.