A Framework for Enterprise Risk Management
Thursday, July 19th, 2007Protection of shareholder value is seen as the chief benefit of Enterprise Risk Management (ERM). Hence enterprise risk management is now firmly on the boardroom agenda. So why is it proving so difficult to implement?
Companies cannot reap the benefits of risk management unless they have the right foundations in place. Any management activity requires a clearly defined set of objectives, clarification of the tasks to be performed, planning and management. Risk management is no exception. In addition, any activity that has multiple participants requires a coordinated consistent approach that aligns all the necessary elements. This uniform approach can be orchestrated through the use of a framework.