Enterprise Risk Management (ERM)
Enterprise risk management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effect of risks on an organisation’s capital and earnings. Enterprise risk management expands the process to include not just risks associated with accidental losses, but also financial, political, strategic, operational and other risks.
Risk is an indispensable part of any business. Director’s battle with business pressures that may or may not be completely beyond their immediate control, such as global economic turbulence; greater global reliance on sourcing capital; rising costs of energy; geopolitical instabilities, increased insecurity; to mention a few. An increase in uncertainties all over the business world, have lead to increased scrutiny of organizations. In an increasing number of industries, board of directors are required to review and report on the adequacy of risk-management processes in the organizations they administer.
In recognition of the importance of leaders identifying and proactively addressing risks and opportunities, Prime KBS provides a framework for risk management through its Enterprise Risk Management (ERM) Programme, a Knowledge Based Solution in Nigeria and the UK. The central goal of this programme is to develop the ‘Individual Competence Scope’ of directors. Directors learn how to improve the capability of each risk function within the organization, coordinate these functions while integrating the output to provide a unified picture of risk for the stakeholders. This strategy ensures an improvement in the organization’s ability to manage the risks effectively at the same time create value for stakeholders.