What is the concept of Enterprise Risk Management (ERM)?

The concept of Enterprise Risk Management (ERM) is centered on a holistic overview of risk across the organization. This approach recognizes that risks are interconnected and can have wide-ranging impacts on all areas of the business, rather than being isolated within specific departments or functions. ERM emphasizes the importance of integrating risk management into the overall strategic management process, ensuring that an organization identifies, assesses, and responds to potential risks in a comprehensive manner.

By taking a holistic view, organizations can better anticipate potential risks, enhance decision-making, allocate resources more effectively, and ultimately pursue their strategic objectives while managing potential threats. This comprehensive approach helps create a risk-aware culture that supports sustainability and resilience in changing environments.