Enterprise Risk Management (ERM) is an oversight tool for Management to enhance online and prior-to-fact capturing of strategic, operational, compliance, financial and external risks surrounding the business environment. In order to confidently provide the required risk information and assurances, an ERM system should be fit-for-purpose and provide a complete and accurate view of the risk profile - if it does not, there is a potential for of being exposed to by increased scrutiny from stakeholders.
While there is no one-size-fits-all approach, the following principles will help you ensure the right building blocks are in place:
There are logical triggers in your business activities that prompt action. Here are some examples:
History consistently shows that organisations that fail to effectively manage risk, often themselves fail!
Drawing on our experience with some of the world’s leading organizations of developing and embedding numerous ERM systems, and our innovative approach to measuring and strengthening culture, we can help you typically in the following areas:
Early and more accurate visibility of changes in the risk landscape in areas that could materially impact corporate objectives, facilitating more timely and informed management intervention.
Behaviours that generate competitive advantage, and the agility and flexibility needed to anticipate change and capitalize on opportunities.
Reduced performance volatility and increased consistency in delivering objectives, which, combined with greater levels of transparency, engenders stakeholder confidence and potentially enhanced valuations.
Development of a robust ERM framework that complies with ISO 31000:2009 Standard and COSO Framework enables you to comply with local, national, regional and international standards and risk related compliance awards.
Increased awareness and understanding of the Board’s desired risk and reward trade-offs, driving decision making consistency throughout the organization.
Enterprise Risk Management Leader, PwC Middle East
Tel: +966 56 934 4900