Businesses take risks with the hope of a positive outcome in the end. But sometimes, the venture backfires, and the organization encounters losses. Enterprise risk management (ERM) leverages resources to ensure the company maximizes profits and minimizes losses.
Typically, the ERM guides decision-making, ensuring the business takes well-calculated and planned risks that align with the organization’s goals, mission, vision, and objectives. Taking business risks requires a holistic approach. That means an Enterprise risk management strategy that fosters growth should use a blend of internal controls, corporate governance, third-party providers, and risk management processes, essentially involving every business stakeholder.
Source: Why Every Business Needs to Incorporate Enterprise Risk Management
