Evolution of Enterprise Risk Management Faced with growing concerns over accountability, DATA 1 have largely realized compliance & liability, organizations the need for true Enterprise Risk Management
WHERE ERM IS HEADING
ERM's PAST MISALIGNMENT:
VALUE DRIVEN ERM:
No unified understanding of ERM existed
Having a deep competency for weighing full portfolios of risk allows companies to manage in the face of uncertainity
DISCONNECT: C-suite executives were disconnected with bottom-up risk professionals
UPSIDE & DOWNSIDE:
LACKING NUMBERS Risk management focused on low probability,highconsequence possibilities, even tough more of uncertainity is generated from shifts in business value drivers
REACTIVE PROCESS Doubling down on ERM was often in response to unfortunate, non value driven event.
Evolution of ERM
Value driven ERM is a dual approach, not only is it about reducing liabilities, its about making savvier investments
ALL THINGS CONSIDERED: Uncertainity & change are growing more complex daily. Boards recognise the fact that they need documented decisions & risk analytics now more than ever.
An increasingly complex world means greater risks & greater value on the line. As your organization's unique risk evolves , its approach to ERM should also evolve
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