Enterprise Risk Management
What is Enterprise Risk Management?
Managing risk at the process level
Enterprise risk management is a holistic view of the most significant risks to the achievement of the organization’s objectives, including both pure risk (only opportunity for loss) and speculative risk (opportunity for loss or gain).
Enterprise risk management provides a variety of benefits, including lower operating costs, improved customer satisfaction, improved access to capital and improved supply chain.
It seeks to proactively determine what can negatively impact the business from any source and allows for an opportunity to control these concerns before the arise.
Benefits of Enterprise Risk Management
No surprises
Applying Enterprise Risk Management
Defining and executingDefining and executing
Identify all potential sources of risk, determine risk tolerances, develop strategies to mitigate or eliminate the risk, and implement controls to maintain the risk mitigation strategies.
Fluctuating fuel prices were impacting a client’s budgeting and cash flow for various contracts. We managed the financial risk by hedging fuel prices, allowing for consistency between their bid pricing and actual pricing.