Businesses face events that can positively or negatively affect their ability to achieve their objectives. These events may represent risks, opportunities, or a combination of both. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines ERM as:
- A continuous process that flows through all levels of an organization
- Driven by people at every level
- Applied in strategy setting and enterprise-wide operations
- Designed to identify and manage risks within the organization’s risk appetite
- Aimed at achieving objectives across strategic, operational, and compliance areas
Risk Framework
Strategic Risks
These include risks tied to:
- Strategy execution
- Political and economic circumstances
- Regulatory and market conditions
- Reputation, leadership, brand integrity, and evolving customer expectations
Operational Risks
Risks in this category cover:
- Human resources and business processes
- Technology and business continuity
- Work health and safety, environmental concerns, and product/service reliability
- Change integration, efficiency, and customer satisfaction
Financial Risks
This category includes risks related to:
- Currency, interest rate, and commodity volatility
- Credit, liquidity, and market fluctuations
Hazard Risks
Hazard risks are often insurable and include:
- Natural disasters
- Liability exposures
- Physical asset impairments and terrorism
Curran Risk Management’s Commitment to ERM
At Curran Risk Management, we are dedicated to integrating Enterprise Risk Management into organizational systems. We encourage businesses to align their Quality, Safety, Environmental, Asset Management, and Information Security systems into a unified management approach. ISO Standards now require organizations to identify risks and opportunities directly related to the products and services they offer.
Partner with us to develop comprehensive ERM frameworks that not only meet these standards but also drive value creation and long-term success.