Enterprise risk management

Overview

Enterprise Risk Management (ERM) remains a complex issue for many organisations and deriving true value from investment in this area continues to be a challenge. As a result, organisations should understand that ERM represents a core management discipline to exploit the evolving landscape that they operate in whilst also enabling meaningful discussions around how to address overall exposure to risk across their enterprise.

At PwC, we aim to simplify and demystify this process for our clients, with a focus on helping to achieve a principles-driven view of ERM and its practical application, ensuring that organisational activities and decisions reflect risk appetite.

Our services draw upon decades of experience of successfully partnering with organisations of all shapes and sizes, allowing us to leverage key insights, and benchmarks to ensure we deliver ERM systems that are fully bespoke and work in reality whilst reflecting common good practice and leading approaches.

When to act

Your organisation has known weaknesses in its current ERM programme
A competitor has suffered a major loss or exploited a significant uncertain opportunity that is relevant to your organisation
There is a major change to your organisation’s strategy/operational profile/external environment that requires a new approach to ERM
Recent actions, behaviours and/or performance have shown your risk exposure is misaligned with your company’s risk appetite
New and emerging technology, standards and methodologies to manage risk more effectively have become available

What good looks like

Adopt a principles-driven view of ERM
Get the basics right with clearly articulated risk descriptions to enable accurate assessment and management response
Link risk management with strategy – a core concept of ERM is to understand risk in the context of achieving strategic objectives
Ensure governance, oversight and management of risk is embedded at all relevant organisational levels
Leverage and market the use of ERM as an effective communication tool
Use data to help ensure the risk system is dynamic and adaptive
Develop risk appetite outputs that reflect strategy and focus on the decision points and drivers that determine how the organisation takes risk in practice
Exploit the evolving role of technology in managing risk
Align risk culture with organisational values and objectives
Ensure risk reporting is concise, relevant and accessible to users - highlight the ‘so what’

How we can help

Articulate and understand risk appetite across your business
Access to latest technology/ practices in managing risk
More effective/in-depth risk reporting
Risk management aligned to goals and cultural ways of working
Evaluate, design and implement full ERM systems