The confluence of financial, market, natural disaster, cybersecurity, and regulatory risks that face organizations demands a way to evaluate disparate risks and devote resources appropriate to their potential negative – and positive – impact on strategy execution. Enterprise risk management (ERM) is an approach for identifying, assessing, and managing all types of risks facing the organization. ERM enables companies to deliberately communicate, compare, and decide on a preferred strategy to prioritize and address risks based on the company’s objectives and risk tolerance. The process includes a deliberate, strategy-based method for companies to accept, avoid, mitigate, transfer, or exploit risks. ERM enables risk decisions to be more informed and effective because the process reflects the entire organization’s priorities and does not saddle individual managers, alone, with difficult and isolated tradeoffs.
Risk management experts, attorneys, operational resilience professionals, strategy, workforce and process experts, and IT and cybersecurity professionals comprise Ankura’s ERM team. We work with senior management and board risk committees to introduce, sponsor and execute ERM initiatives in a way that right-sizes the effort and investment. We facilitate inherent risk assessments, identify and evaluate controls and residual risk, perform gap analyses, and help identify viable alternatives and implement risk management appropriate to each client’s unique circumstances. Our ERM approach provides a practical methodology and prism through which clients can make optimal risk-based decisions.