Enterprise Risk Management (ERM):
Enterprise Risk Management (ERM) covers all aspects of an organization in managing risks and seizing opportunities related to the achievement of the organization's objectives; not only for defense against losses, but for reducing uncertainties, thereby enabling better performance towards the organization's objectives. Risk Smart Consulting works with you to manage your risks. David Foley, President of Risk Smart Consulting Inc.has a wealth of experience in ERM with corporate and public entities. As a certified Risk Manager, he works directly with clients to manage risks and maximize potential.
Historically, risk managers in an organization spent much of their time administering the corporate risk financing program comprised of an array of conventional business insurance, self-funding and perhaps a captive insurance company. Insurance is not, however, the first line of defense to the presence of risk. Before insurance is purchased, companies should be satisfied that all reasonable measures are taken to reduce the likelihood of an event occurring and limiting the severity of the loss when it does. Risk Smart Consulting works with you to minimize risks using modern management best practices.
Risk and Insurance Management Society (RIMS)
definition of ERM:
Enterprise Risk Management (ERM) is a strategic business discipline that supports the achievement of an organization's objectives by addressing the full spectrum of its risks and managing the combined impact of those risks as an interrelated risk portfolio. ERM represents a significant evolution beyond previous approaches to risk management in that it:
- Encompasses all areas of organizational exposure to risk (financial, operational, reporting, compliance, governance, strategic, reputation, etc...).
- Prioritizes and manages those exposures as an interrelated risk portfolio rather than as individual silos.
- Evaluates the risk portfolio in the context of all significant internal and external environments, systems, circumstances and stakeholders.
- Recognizes that individual risks across the organization are interrelated and can create a combined exposure that differs from the sum of the individual risks.
- Provides a structured process for the management of all risks, whether those risks are primarily quantitative or qualitative in nature.
- Views the effective management of risk as a competitive advantage.
- Seeks to embed risk management as a component in all critical decisions throughout the organization.