Every organization faces risk each day. Without risk there is no reward. The key question for management is: are you prepared to deal with the risk event when it occurs?
StrategicProjectSolutions utilizes an Enterprise Risk Management (ERM) methodology to ensure that organizations are properly prepared to mitigate any vulnerabilities against its assets – people included. A structured and consistent approach ensures that all aspects of an organizations’ potential vulnerabilities are all addressed, as well as seizing opportunities as they arise.
Working with senior management, StrategicProjectSolutions establishes the objective of the Risk Management activity, thereby setting the scope for the process. Understanding the risk parameters of Risk Appetite and Risk Tolerance, plus Risk Categories and Nature of Risks, defines the boundaries. Both internal and external factors are considered throughout the process, as well as the corporate governance model. External factors assessed include: business, socio-economic, regulatory, cultural, financial, political, government, investors / analysts, customers, suppliers and the community at large. Internal factors to be reviewed include: organizational and corporate culture, internal stakeholders, both organizational and management structure, operational capabilities and overall organizational goals, objectives and related strategies.
Benefits of an Enterprise Risk Management model?
- Enhances corporate governance
- Aligns business strategy and corporate culture
- Helps identify and manage multiple-cross enterprise risks
- Enhances the quality of risk response decisions
- Better response to changes that impact the organization
- Reduces operational surprises and losses
- Recognize and seize opportunities better
What to expect?
- Risk Management overview for team members
- Collaborative approach to meetings and workshops with each area of the business
- Comprehensive risk management report that:
- identifies, assesses, and categorizes risks;
- risk mitigation strategies for each identified risk event
- Model and tools for ongoing monitoring and reporting of risks
- Risk Management overview for team members
- Collaborative approach to meetings and workshops with each area of the business
- Comprehensive risk management report that:
- identifies, assesses, and categorizes risks;
- risk mitigation strategies for each identified risk event
- Model and tools for ongoing monitoring and reporting of risks
How does ERM differ from BCP, DRP and BIA?
Enterprise Risk Management (ERM) is designed to provide an overall assessment, monitoring and control of risks to the organization. It can highlight various aspects of risk, some of which may be very positive to an organization, such as new emerging markets. ERM is no longer the domain of “insurance” where traditionally risk management looked upon purchasing offsetting policies to mitigate against potential threats. Today ERM is embedded into all operational areas and systems. The focus of StrategicProjectSolutions is to assist organizations in defining and implementing a formal governance structure and process for managing enterprise risk in order to protect all stakeholders. Individual managers are responsible for managing risk in accordance to these guidelines.
Business Continuity Planning (BCP) and Disaster Recovery Planning (DRP) are tools and processes to ensure that core business services can be delivered in the event of a major disruption in the business. Additional tools such as a Business Impact Analysis (BIA) determines the impact of a given business function and its priority in terms of recovery objectives. None of these tools is designed to assess the probability of business interruptions nor assessing controls in place. In that sense, BCP, DRP and BIA are all effective tools under the umbrella of Enterprise Risk Management (ERM).