While individual offices and buildings need risk management plans, risks threaten entire enterprises, not just individual units, projects or plans.
G2 Consultants works with your enterprise to create an across the board Enterprise Risk Management Plan.
An ERM program’s success is driven by ongoing identification and implementation of new skills and capabilities. It is an organic plan, which needs time to mature and develop. Many ERM’s fail because they are not given time to grow and develop within the enterprise in which they serve. When given time to develop according to business objectives, ERM’s act as an asset to both the internal and external stakeholders in a business.
ERM goes further than a risk management plan. A risk management plan focuses on preventing workplace illness and injuries, while protecting the legal interests of an organization. Enterprise risk management’s scope is enterprise wide and is focused on enhancing, not just protecting, tangible and intangible assets of an enterprise.
Individual risk management activities may reduce earnings volatility by reducing the probability of catastrophic losses such as hazard risk. Enterprise risk management looks at the potential interdependencies between risks across activities.
Enterprise risk management should be integrated with business decision making activities at both the executive and operational levels. ERM looks at the four main categories of of a company’s organizational assets.
Examples of these categories and possible components are as follows:
- Physical Assets- Inefficient use, unauthorized use, catastrophic loss and unacceptable costs.
- Financial Assets-Unexpected losses, unacceptable losses, insufficient liquidity and inefficient use
- Customer Assets- Significant loss of key channels or customers, loss of markets or market opportunities or pervasive quality failures.
- Organizational/Employee Assets– Talent shortages, work stoppages, loss of morale, excessive costs or poor quality
As a business works to achieve its goals, it is important to look at and understand possible uncertainties for both its tangible and intangible assets. G2 consultants can help you plan for these unknowns by performing a risk assessment and helping you with your enterprise risk management plan.