Enterprise wide risk management
Enterprise Wide Risk Management (ERM) is a robust framework outlining the methods and processes used by an organisation to strengthen the management of financial and non financial risks such as strengthening the management of credit, fraud and systems failure.
ERM enhances the basis for decision-making through a clear expression of business objectives, more focused management information and a better understanding of the trade-offs between risk and reward. Effective ERM can provide the assurance that enables companies to take more controlled risks and capitalise on opportunities.
Risk in a business context can be a benefit as well as a burden. The value of risk lies in the distinction and effective management of those risks that impede an entity’s ability to achieve its commercial objectives and those that enhance it.
At PwC we believe effective risk management should create value, be tailored, be dynamic, iterative and responsive to change, and be capable of continual improvement and enhancement.
Risk management capabilities are especially important today as the business environment becomes more volatile, which naturally escalates stakeholders’ expectations for risk management. Working with PwC will give you comfort that there is a coordinated application of resources to control and utilise all facets of risk in these changing times; enhancing your business’ worth and crystallising opportunities.
Building the appropriate culture, processes and infrastructure for effective risk identification, measurement, mitigation and monitoring to optimise business outcomes requires specialist skills which PwC has at its disposal.
Enterprise Wide Risk Management and PwC
PwC has exceptional experience in the implementation and development of ERM frameworks across all sectors. This includes the development of the process, information and organisational capabilities underpinning effective ERM, along with helping to align the ERM with existing core business functions.
We achieve this by:
- Assessing an organisation's current approach to risk management against global and industry peer group benchmarks
- Assessing the most appropriate strategy for managing risk – including consideration of balance sheet capacity for risk, alternative risk transfer mechanisms, insurance versus self insurance, enhanced controls or other risk mitigating strategies
- Assessing the risk management culture and how it may be improved and sustained within the business
- Complex risk framing and modelling, decision analysis/options analysis, and diagnostic review of corporate/enterprise risk frameworks
- Identifying and analysing risks that may impact the successful execution of a project or investment decision
- Identifying key risks impacting the execution of the business plan and assessing the effectiveness of overall risk management
- Improving the quantification and measurement of risks, risk probability and impact
- Reviewing the insurance and self insurance strategies through risk finance and insurance assessments
- Undertaking post incident reviews and assessing immediate response strategies.