The mission-critical objective (and challenge) of Enterprise Risk Management (ERM) is to capture a 360-degree view of potential risks facing an organization. It is no simple task—but these keys to risk management for the year will help you stay competitive. To get all our tips and best practices, download our white paper.
ERM typically includes identifying specific situations related to the company’s business goals that represent risks and opportunities, assessing them in terms of probabilities and extent of impact, preparing a response strategy, and tracking processes.
For an organization’s ERM program to be effective, it should utilize an innovative approach to prioritize risks which have been identified while developing tactics to mitigate, control, and track those risks. Whether an organization is evaluating an existing ERM program or considering the implementation of one, the following best practices should be part of the ERM roadmap:
- Ensure utilization of all enterprise data: Integrate structured data with unstructured information, such as email, social media, blogs, server logs, and procedural documentation, to gain context and insight into real-world risks.
- Adopt an inclusive information approach: Information silos can cause organizations to underestimate the extent of their exposure risk. An effective ERM program is based on a strong foundation of data that encompasses the entire organization, not just one department or business area.
- Add value by leveraging risk data: Another tactical best practice of ERM is to leverage risks for greater benefit. Organizations that take advantage of in-depth insight into their business objectives and risks are in a better position to manage those risks. The all-in-one TruOps dashboard provides comprehensive insight and increased risk visibility across the enterprise. Schedule a demo today.
- Access the risk posed by cyberthreats: Because every company is exposed to some level of risk with respect to its data and information assets, anticipating potential cyberattacks is a critical aspect of risk management. A thorough understanding of an organization’s ongoing risk, as well as a readiness to act quickly in response to any cyberthreat, will enable a company to mitigate the reputational and financial fallout in the event of its data being compromised.
The end goal of an ERM strategy is to enhance risk outlook and coordination, as well as to improve an organization’s ability to anticipate and manage them effectively. Implementing the above best practices for ERM will enable risk-aware organizations to make decisions in alignment with their business objectives.
An effective ERM strategy is just one of the keys to risk management in today’s risk environment. Download our white paper for more best practices.