Enterprise Risk Management (ERM)
Is this water a risk...
...or an opportunity?
What is ERM?
"Enterprise Risk Management" (ERM) is a system for cataloging, ranking, and managing risk. In the not-for-profit and mid-size business environments, it is an emerging tool for keeping "silo" operations in synch, for developing a share vocabulary for discussing risk, and for keeping trustees and other fiduciaries informed about the organization's "risk universe."
How is ERM different than traditional "risk management?" Think of it this way: "risk management" is making sure there isn't a tripping hazard on the floor. "Enterprise Risk Management" is making sure your business structure has the right personnel to prevent, respond to, and learn from the existence of tripping hazards. And in the world of ERM, "risk" is not only something bad happening...it is the failure to recognize and seize a mission-critical opportunity.
ERM can be implemented to not only manage enterprise-level risk, but to complement and enhance annual audits, strategic plans, master plans, and other long-range planning, as well as annual insurance renewal. If your company is interested in exploring ERM, please give the Office a call to discuss.