Extending Enterprise Risk Management (ERM)

Earlier in the year, PricewaterhouseCoopers released a white paper detailing an extended approach to enterprise risk management.

"Extending Enterprise Risk Management (ERM) to address emerging risks looks at how organisations identify, assess, and manage risks; what techniques they are using as the basis for determining response strategies that align with their strategy; and risk appetite and tolerance.

The paper proposes a 4-step framework organisations can use to better protect themselves and even further their strategies and objectives by embedding this discipline into their risk management culture:

• Identify emerging risks relevant to the organisation
• Assess the risk’s significance, interconnectedness with other risks, and implications to the business
• Determine risk response strategies, considering collaboration with external parties
• Routinely monitor emerging risks through effective use of indicators"

The paper can be downloaded from the PWC site.