Enterprise Risk Management (ERM) can be defined as a holistic, integrated, portfolio approach to risk management that focuses on consistently managing risks regardless of type, across the enterprise. The purpose of ERM is to improve the firms’ ability to deliver its objectives and sustainably create shareholder value.
It is frequently seen as an umbrella approach that sits above other risk types to provide an overview of the enterprise’s risk profile. However, it is important to highlight the emphasis on ‘delivering objectives’ and ‘creating shareholder value’ within the definition above, for this is the real purpose and value of ERM.
Too often when implemented, ERM becomes about creating a consolidated ‘Top 20’ risks to present to the Board and Regulators solely for comfort that the firm is managing its risks. This approach undermines the potential value Enterprise Risk Management can bring.
KRM22’s Global Risk Platform provides applications to help you address your firm’s regulatory, market, technology and operations risk challenges and to manage your entire enterprise risk profile. KRM22 is a public Group listed on AIM and headquartered in London, with offices in several of the world’s major financial centers.