Enterprise risk management: Protecting and enhancing value
Enterprise risk management
In today’s markets, businesses continue to experience an escalating pace of change—disruptive technologies, innovative business models, new forms of competition, changing geopolitics. As the world forms new norms, calibrating strategy to emerging risks and opportunities is key for every company.
The proliferation of risks and opportunities that businesses face today is not just “noise.” Failure to recognize and respond to the very real “signals of change” in industry sectors and societal behavior may mean the difference between growth and destruction for some companies.
Success requires a holistic and integrated approach to managing risk—the competitive landscape and risk environment demand it, regulators expect it, and securing value, growth, and sustainability for investors requires it.
Business imperative, regulatory requirements, and increased rating agency interest are prompting a new focus on ERM, and business leaders are seeking to either implement ERM for the first time, or to enhance and develop their ERM processes—embedding an approach that is tailored to their company’s culture and structure, aligned with their business strategy, operationalized in their business processes, and focused on their most critical risks.
In this document, we outline some common themes and leading practices that can provide the means of realizing ERM’s potential for enabling organizations to add business value and achieve competitive advantage.
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