Acufire UK ltd - Enterprise Risk Management

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A more holistic approach - what is enterprise risk management?

A cleverly designed and implemented enterprise risk management (often referred to as ERM) framework might be characterised as:

Focused on governance, risk, and compliance

Focused on opportunity and downside risk

Predictive, preventive and preemptive

Focused on value, return and level of investment required

Employing top-down processes

Enterprise risk management demands that senior management, including the board of directors, are highly dedicated to the task at hand.

The risks involved here have a broader scope than having to deal with a slightly higher warranty return rate than originally expected. Also, the associated risks have far deeper implications than reliability performance. In any case, if your business is intending to put together an enterprise risk management framework, then you need a reliability professional (such as those provided by Acufire) who understands how their work fits into the larger program.

What is the difference between risk management and enterprise risk management?

The main difference is that enterprise risk management raises traditional risk management to a higher, strategic organisational level. It can be tough to implement and many companies are baffled as to where and how the process should begin. One valuable tool for implementing enterprise risk management is a risk identification framework. As a general rule, we’d say there are two obvious key steps that should assist an organisation in reducing its exposure to instability:

Conducting a SWOT analysis

Prioritising risks

If carried out effectively, enterprise risk management is a lower risk activity that promises greater financial savings, improvements in sustainability, and a significant boost to investor and stakeholder confidence. At the same time, it’s not for everyone. It’s more delicate and precautionary - and takes more notice of trends and connections. Get in touch with Acufire today if you’re curious to know more about either approach. Together we can figure out the right way forward for your business.

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