Enterprise Risk Management when effectively designed and implemented has the potential to increase the reliability of operations, build resilience to crises and foster the conditions for sustainable and profitable performance. However implementing ERM is a very challenging undertaking and many organizations struggle through the process and fail to achieve any tangible benefits.
Their risk management efforts often degenerate into narrow compliance and regulatory rules and end up being nothing more than “box ticking” exercises. Risk champions are integral to effective risk management. In the financial world, risk management is the process of identification, analysis and acceptance or
mitigation of uncertainty in investment decisions.