Enterprise Risk Management

Identify key Business Risks
Asses and determine risk mitigation strategies / processes
Develop risk remediation processes

The underlying premise of Enterprise Risk Management is that every entity exists to provide value for its stakeholders. All entities face uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise Risk Management enables senior management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value.

“ERM, a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.”

Why ERM?

Deal effectively with potential future events that create uncertainty.
Respond in a manner that reduces the likelihood of downside outcomes and increases the upside.
Improve ability to prevent, quickly detect, correct, and escalate critical risk issues
Reduce burden on business operations by standardizing risk management principles and language
Reduce cost of risk management by improved sharing of risk information and integration of existing risk management functions
Improve strategic flexibility for both upside and downside scenarios.

How we can help

Reviewing critical control systems and risk management processes.
Performing an effectiveness review of management's risk assessments and the mitigating controls.
Providing advice in the design and improvement of control systems and risk mitigation strategies.
Implementing a risk-based approach to planning and executing the internal audit process.
Ensuring that internal audit’s resources are directed at those areas most important to the organization.
Challenging the basis of management’s risk assessments and evaluating the adequacy and effectiveness of risk treatment strategies adopted.