Enterprise Risk Management: Starting From Scratch

Enterprise risk management is an approach to evaluating a wide spectrum of diverse risks within an integrated portfolio, rather than in separate silos. This allows the risk manager to observe and act upon interrelationships and dependencies between and among risks not recognized in the silo approach to managing risk. One of the great problems inherent in the implementation of an Enterprise Risk Management (ERM) program is how to create protocols that are compatible with the existing organizational structure and long-held attitudes about risk. Unfortunately, the need to accomplish this daunting task often short-circuits the nascent ERM initiative.