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What is ERM?
Improved decision making through unobstructed knowledge, yielding better performance
What is Risk?
The possibility that an event will occur and adversely affect the achievement of objectives.
Risk Versus Return:
We want to achieve the highest risk-adjusted return for any range of possible risks.
If we are above or below that margin, we are forgoing potential returns to the organization.
ERM Value Proposition:
- Provides comprehensive view of organizational risk for enhanced decision making
- creates value by improving the financial/risk relationship
- reduces regulatory burden and improves the relationship with auditors
- minimizes organizational and personal liability.