From The Experts
What is risk management?
Risk management is the process of analyzing the exposure to risk and determining how to best handle such exposure. It has traditionally been considered a credit administration and corporate insurance function, but today it has become far more comprehensive; it creates value for an organization and should be an integral part of the organizational process.
The modern approach to risk management involves a transparent, customized, dynamic and responsive attitude to change.
WHAT IS ENTERPRISE-WIDE RISK MANAGEMENT (EWRM)?
Enterprise-Wide Risk Management is a new strategic process that is a departure from the traditional concept of risk management.
While traditional approaches are fragmented and limited to being function-driven, EWRM expands the concept in order to adapt to today’s rapidly changing world where the rules of wealth creation and preservation are ever-evolving. It is no longer enough to assess risk for certain limited functions. Risk management does not end at the hands of credit and insurance companies; it is an ongoing process that is the responsibility of every member of an organization.
EWRM is a cross-functional, integrated approach to risk management that involves dynamic and continually improving solutions that are capable of adding value to an organization over time.
This value-generating process provides you with the discipline and tools to master risk as your organization continually generates value. It enables you to identify, measure and manage the entire range of business opportunities and risks facing your organization.
A FUNDAMENTAL SHIFT IN HOW BUSINESSES APPROACH RISK
Environmental & Risk Management Services Philippines, Inc. uses EWRM as its new dynamic approach to handling risk.
We represent a fundamental shift in the way businesses must approach risk. As the economy becomes more service-driven and globally oriented, business cannot afford to let new, unforeseen areas of risk remain unidentified.
Currency fluctuations, human resources in foreign countries, evaporating distribution channels, corporate governance, and unprecedented dependence on technology are just a few of the new risks businesses today must assess.
A 21ST CENTURY NECESSITY
Enterprise-Wide Risk Management (EWRM) is a complex yet critical issue that all companies must deal with as they head into the twenty-first century.
It empowers companies to balance risks with rewards as well as people with processes. But to master the numerous aspects of EWRM, companies must integrate risk management into the culture and operations of the business.
