Enterprise Risk Management (ERM) is a comprehensive, systematic approach for helping all organizations, regardless of size or mission, to identify events and measure, prioritize, and respond to the risks challenging its most critical objectives and related projects, initiatives, and day-to-day operating practices.
Enterprise Risk Management (ERM) has gained a renewed focus and relevance in the wake of the current economic environment. The Federal Government is now facing unprecedented levels of risk and adding to the complexity of managing risk is the rapid pace of change, global interdependence and the increasing speed of information flow. Advancements in technology have spawned new operational models that drive these changes; as well as new threats, ranging from data vulnerability to the viral spread of reputational damages via social media.
As a result of these escalating risks, Federal Agencies are now faced with both increasing demands for transparency into risk profiles and greater penalties associated with the failure to manage key risks. As the bar rises, managing risks in silos with conventional risk management frameworks is no longer seen as acceptable. Survival and success in this uncertain environment demand risk resilience — being able to anticipate and adapt to change; absorb and recover from a broad range of risk events; and seize the opportunities hidden within those risk events.
So how can your ERM program become more risk resilient? You don’t necessarily need a new form of ERM to achieve organizational resilience, but you will need to make sure its operation reflects the dynamic and unpredictable nature of the risk and wider business environment you face.