In the last blog we discussed the components of the Enterprise Risk Management (ERM) Framework, and today we will look at what the benefits of implementing the ERM Framework are.
Organizations that implement the process will have:
- A greater likelihood of achieving business objectives
- Consolidated reporting of different risks at the Board Level
- Improved understanding of the key risks facing the organization
- Greater management focus on risks, and ones that really matter
- More focus internally on doing the right things, the right way
- More informed risk taking and decision making
ERM activities are a prerequisite for sound governance and risk management. There are many players involved with risk in any organization, and without something like ERM in place as a guide it is unrealistic to expect them all to perform in a coherent way.