What is erm?

ERM stands for Enterprise Risk Management. It's a structured and comprehensive approach to identifying, assessing, and managing all types of risks that could potentially impact an organization's ability to achieve its strategic objectives. The goal of ERM is to create, preserve, and realize value by improving decision-making, enhancing operational efficiency, and protecting assets.

Key aspects of ERM include:

• Risk Identification: Identifying potential risks that could affect the organization.
• Risk Assessment: Evaluating the likelihood and impact of identified risks.
• Risk Response: Developing and implementing strategies to manage risks, such as avoidance, mitigation, transfer, or acceptance.
• Risk Monitoring: Continuously monitoring the effectiveness of risk management activities and adapting them as necessary.
• Risk Reporting: Communicating risk information to relevant stakeholders.

ERM frameworks, such as COSO ERM, provide guidance on how to implement and maintain an effective ERM program. Implementing ERM helps organizations make informed decisions, improve their resilience, and achieve their strategic goals.