While traditional risk management operates within departmental boundaries, ERM adopts a more holistic approach. Enterprise Risk Management, or ERM, addresses the interconnected nature of risks across the entire organizational landscape.
Viewing risk through ERM’s strategic vantage point builds resilience and maturity.
In this blog, we’ll explore the fundamentals of ERM, examine real-life examples such as the collapse of Silicon Valley Bank (SVB), and highlight key points to consider when selecting an ERM software vendor in 2024.
Understanding Enterprise Risk Management (ERM)
ERM involves identifying the sources of risks and opportunities within an organization and implementing strategies to mitigate or capitalize on them. To illustrate this concept, let’s consider a hospital parking lot. While seemingly trivial, the planning of the parking lot can significantly impact the hospital’s operations and revenue. Imagine a nervous patient arriving on time at the hospital for a procedure. Their normal anxiety quickly turns to anger as they circle the parking lot, only to find every spot occupied. That added stress diminishes the chances of the patient returning or referring…
