Enterprise Risk Management
An Analytic Approach
A Tillinghast – Towers Perrin Monograph Foreword
usiness Risk Management…Holistic Risk Management…Strategic Risk Management… BEnterprise Risk Management. Whatever you choose to call it, the management of risk is undergoing fundamental change within leading organizations. Worldwide, they are moving away from the “silo-by-silo” approach to manage risk more comprehensively and coherently.
This heightened interest in Enterprise Risk Management (ERM) has been fueled in part by external factors. In just the last few years, industry and government regulatory bodies, as well as institutional investors, have turned to scrutinizing companies’ risk management policies and procedures. In more and more countries and industries, boards of directors are now required to review and report on the adequacy of the risk management processes in the organizations they govern.
And internally, company managers are touting the benefits of an enterprise-wide approach to risk management. These benefits include: