Home Case Studies Tools Alliances Contact Us
     ERM Overview
Enterprise Risk Management is a structured and disciplined approach encompassing processes that align strategy, processes, people, technology and knowledge with the purpose of evaluating and managing the uncertainties the enterprise faces as it creates value.

Enterprise Risk Management

ERM is critical to all organizations current and long term performance. Management is accountable for key business objectives and identifying the risks related to the achievement of these key objectives. Management control is recognized as the critical success factor for ensuring that the key risks that could negative impact the achievement of key strategic and business objectives are adequately addressed.

Ineffective and inadequate risk management can thus greatly impact short term and long term business performance, and negatively impact the availability of resources required such as capital and personnel. The following are key risk ERM business processes:

  1. Risk Assessment, from identification to assessment
  2. Risk Management, from assessment to remediation and monitoring.

Enterprise risk management processes that are manually intensive, rely heavily on MS Excel spreadsheets and lack effective internal controls are highly subjective and have a high risk of error.

CEOs are focused on investment and return, on opportunity and reward and on competitive advantage and growth. That is why business risk management is vital to their success.
  • Investment and return? - No investment is without uncertainty. Identifying and mastering risk is a key to managing investment and return.

  • Opportunity and reward? - Risk is the partner of opportunity. Opportunity seeking behavior is invigorated if managers have the confidence that they understand the risks and have the resources to manage them.

  • Competitive advantage and growth? - Business risk management is much more than just avoiding and remediating risks. It is the management skill for selecting the most rational bets for a company to take in the face of powerful and dynamic forces in this new and challenging economic environment. These same forces offer exciting opportunities for new sources of competitive advantage and growth.
Risk Management is thus critical to all organizations' current and long term performance. Management is accountable for key business objectives and identifying the risks related to the achievement of these key objectives. Management control is recognized as the critical success factor for ensuring that the key risks that could negative impact the achievement of key strategic and business objectives are adequately addressed.

Ineffective and inadequate risk management can thus greatly impact short term and long term business performance, and negatively impact the availability of resources required such as capital and personnel.

Organizations have the opportunity to significantly improve their risk management by recognizing its current state and committing to organizational, process and technology changes needed for improvement.
  Current State   Best Practice
  Fragmented   Integrated
  Negative   Positive
  Reactive   Proactive
  Ad Hoc   Continuous
  Cost-based   Value-based
  Narrowly-focused   Broadly-focused
  Functionally-driven   Process-driven
  Manual   Automated
To establish an effective and sustainable enterprise risk management capability an organization must first recognize and make a commitment to the 'journey' required. Effective risk management does not happen quickly.

Secondly the organization must apply a process view of risk management, recognizing that like all key business processes, there must be a clearly defined purpose (goals and objectives), a framework against which to measure progress, a consensus understanding of the current state, the identification of organizational, process and technology changes needed, the capability to monitor progress and the recognition of the need for continuous improvement.

The Process Partners recommended overall enterprise risk management process is described below:


The following are key risk ERM sub- processes:
  • Risk Assessment, from identification to assessment

  • Risk Prioritization, from assessment to prioritization

  • Risk Management, from prioritization to remediation and monitoring
Process Partners, LLC is uniquely qualified to assist organizations in their journey toward effective Enterprise Risk Management as the result of its experience, skills and tools for facilitating changes in organization, process and technology to achieve:
  • Successful execution of organizations' strategies and goals

  • Regulatory compliance

  • Improved profitability

  • Improved internal controls

Home About Us Site Map