Entity Risk Management Services

Entity Risk Management provides a framework which typically involves identifying particular events or circumstances relevant to the organisation’s objectives, assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress.

By identifying and proactively addressing risks and opportunities; business enterprises protect and create value for their stakeholders that include their owners, employees, customers, regulators, and the public at large. ERM itself is constantly evolving to address the needs of various stakeholders, who want to understand the spectrum of risks facing complex organisations to ensure they are approximately managed.

Defined by the US 'Committee Of Sponsoring Organizations Of Treadway Commission' (COSO) as, ERM is "a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives." COSO divides ERM process into eight components: (1) internal environment, (2) objective setting, (3) event identification, (4) risk assessment, (5) risk response, (6) control activities, (7) information and communication, and (8) monitoring.