Enterprise Risk Management – or ERM – is a term that’s been around for years to describe the process of collectively managing all of an organization’s risks and opportunities. But so far, ERM has been more of an idealistic concept than a practical solution. It was simply too difficult to throw high-level risks like reputation into the mix.
Advances in technology, however, are opening up new possibilities for managing all sorts of risks, in addition to those covered by insurance. Think of ERM as a natural extension to what you’re already doing. The question isn’t one of either traditional risk management OR enterprise risk management, rather it’s where are you on the spectrum – and is that where you want to be?
Here are some of the key characteristics of both to help you sort out your position:
Identifying and managing all risks and their cumulative impact on the organization can be a tall order if you’re relying solely on traditional methods of managing risks. The proper tools and technology can be just the ticket your organization needs to achieve the enterprise wide view of your risks you’ve been waiting for. And that’s definitely something you’ll want to keep on your radar.