Enterprise Risk Management - Keys to Success
Enterprise Risk Management  can be incorporated to deal with financial, operations and strategic risks. Enterprise risk management enables companies to examine all the risks they may face and to measure the impact of these risks in the long-term viability of the company and to incorporate the steps to manage those risks.
ERM can be a compelling tool for a number of reasons. First, the process of identifying, quantifying and prioritizing risks makes them more prominent and real to executives and managers who may not have given risk management significant thought before. Second, a holistic approach to risk management takes the entire concept beyond the traditional parameters of what is insurable.
The article outlines the three stages of risk management such as, "Setting the Stage", "Identifying Risks" and "Managing Risk." Enterprise risk management is varied for each and every company, but there are some common keys outlined below to successful ERM.
- Have a stated goal or desired result.
- Gain senior-level support.
- Prioritize risks.
- Develop a policy.
- Make ERM an ongoing process.
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