Clearing the clouds Shining a light on successful Enterprise Risk Management

Overview

Risk is inherent within every business ecosystem, adding to a multitude of existing challenges of operating in today’s global business climate.

The threat of catastrophic loss – from terrorism, natural disasters, financial mismanagement, IT security breaches, supply chain disruptions and more – demands preparedness to assure financial and business continuity. Yet recent studies suggest few companies fully understand or are properly prepared for the breadth of risks they encounter. Historically viewed as the domain of the CFO, less than 20pc of enterprise risks are financial, legal or compliance in scope, yet all risks can ultimately have a financial consequence. Addressing the scope of Enterprise Risk Management (ERM) requires a level of organisational collaboration that culturally and practically can be very difficult to implement. The first step toward creating a robust ERM program encompasses understanding the scope of risk management and nurturing collaboration and preparedness – making it a ‘team sport’ across the enterprise.