ERM is not only a process, but also a mindset that should be integrated with the culture, values and corporate governance system of the enterprise. Correctly designed and implemented it is a powerful tool for business management to gain assurance that risks and opportunities are systematically managed on all levels – corporate, business area, subsidiary, division, business unit, even projects, as well as within support functions.
The underlying premise behind ERM is that every entity exists to deliver value to its stakeholders.
The overall aim of ERM is to:

  • Provide reasonable assurance to management, board and key stakeholders that business objectives are being achieved
  • Strengthen the corporate governance framework
  • Protect and enhance corporate value/values
  • Stimulate and reinforce desired behaviours


    • Derived benefits from introducing ERM (as experienced from our consulting practices):

  • Provides risk overview through systematic coordination and evaluation - with a portfolio perspective
  • Creates understanding and consensus about critical risk issues - risk transparency
  • Increases risk awareness
  • Supports exploiting opportunities and reduces the likelihood of big mistakes / bad surprises
  • Leads to action (or conscious inaction)
  • Improves predictability of results
  • Is used as a complementary methodology for Internal Audit and RM/Insurance
  • Creates confidence and provides assurance to stakeholders

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