Managing risk is something that we used to do in life and that also happen in corporation (generally we used enterprise term instead of corporate ). IT’S NOT SOMETHING NEW.
The term ERM is used to make it more systematic refer to how we manage risk that could make our objective unachievable. The way we manage risk must consider all knowledge available such as managerial finance, human capital, strategic management, and legal.
The point is when you want to implement enterprise risk management (ERM) you should
- GET THE RIGHT START by building strong risk governance as the foundation
- CHOOSE THE MOST SUITABLE RISK FRAMEWORK according to corporate’s characteristic and used it as guideline
- MAKE RISK MANAGEMENT EMBEDDED IN CORPORATE CULTURE by making it integrated with corporate’s and employee’s Key Performance Indicator (KPI)