Enterprise risk management consulting is a crucial aspect of business growth, helping companies identify and mitigate potential risks that could impact their success. By implementing effective risk management strategies, businesses can ensure long-term sustainability and profitability.
A well-structured enterprise risk management framework can help organizations achieve this goal by identifying and assessing potential risks, developing mitigation plans, and monitoring and reviewing risk management processes. This framework can be tailored to meet the specific needs of each business.
Implementing enterprise risk management consulting can have a significant impact on a company's bottom line, with some businesses reporting a reduction in risk-related costs of up to 30%. By prioritizing risk management, businesses can also improve their reputation and increase customer trust.
What You Can Achieve
With enterprise risk management consulting, you can achieve stability and long-term profitability for your organization. By targeting your most critical strategic risks, you can make more informed decisions.
A robust enterprise risk management framework allows you to align risk strategy with organizational strategy and objective setting, and define appetite overall and by risk type. This means you can determine the likelihood and potential severity of your risks and make data-driven decisions.
You can refine your risk finance strategy with Connected Risk Intelligence, a decision-making software-as-a-service (SAAS) platform that enables optimized risk finance decisions and maximized value. This platform provides the insights you need to understand your risks and make data-driven decisions.
Comprehensive strategic risk assessments can help you identify, prioritize, and articulate and qualitatively assess enterprise risks. Focused risk assessments for business units, geographies, product lines, etc. can also be conducted to provide a more detailed understanding of your organization's risks.
Risk reporting structures, policies, and committee charters can be established to ensure effective risk governance and a strong risk culture. This includes best practices for education materials and communication plans.
Here are some key features of a robust enterprise risk management framework:
- Align risk strategy with organizational strategy and objective setting
- Set meaningful impact scales with explicit connection to financial and strategic priorities
- Define appetite overall and by risk type (higher appetite for risks with upside potential)
- Define success for risk decisions
Dashboards can be used to track and monitor the risk profile, and Key Risk Indicators (KRIs) and Key Performance Indicators (KPIs) can be developed to provide a clear understanding of your organization's risks.
ERM Frameworks and Drivers
ERM frameworks today are driven by enterprise risks that can't be managed by traditional risk management styles. These styles often focus on segregating risks, but modern ERM approaches recognize how risks can trigger, connect and amplify each other.
Traditional risk management styles can work for routine and predictable risks, but they're not equipped to handle the complex risks that can have long-lasting implications for organizational resilience. This is why modern ERM approaches are necessary.
Enterprise risk management views risks as they really are, rather than how they're liked to be. This means acknowledging the potential consequences of risks and taking proactive steps to mitigate them.
The most urgent enterprise risk questions today include:
- Do you have the right tools and methods to define risk? And do you have the most appropriate action plans to respond?
- Can you demonstrate to senior leaders, board of directors, investors and shareholders that your risk management approach optimally supports your strategic goals?
- In a warming world with fast-moving climate and ESG regulation, how can you identify and mitigate the most critical ESG risks including physical and transitional climate risks?
- As supply chains become increasingly complex and vulnerable to climate and geopolitical uncertainty, how can you transform supply chain exposures into competitive advantage?
- Are you sure your people and rewards strategy can hire, retain and engage tomorrow’s talent?
- Are you prioritizing the fast-changing emerging risks such as generative AI risks highly enough and using enterprise risk best practices to address the challenges faced?
Why WTW
WTW Enterprise Risk Management Consulting offers a multidisciplinary approach to understanding and governing enterprise risks. Our professionals focus on tailoring solutions specific to your industry by quantifying enterprise risk and determining the financial impact.
Our deep industry expertise and powerful, proprietary data and analytics enable us to provide a complete view of an organization's risks. We cover the entire risk value chain, from risk identification to risk transfer.
As part of WTW, a leading provider of professional risk management services, we have a truly 360-degree view of an organization's risks. This allows us to offer solutions tailored to your challenges.
Our analytical ERM approach audits critical risks and evaluates the financial benefit of mitigation tactics. We also have access to risk analytics tools and a global network of experts to draw upon.
To unlock smarter ways to manage your enterprise risk, our ERM experts are here to help.
Frequently Asked Questions
What does an enterprise risk consultant do?
An enterprise risk consultant helps organizations identify and address potential risks, such as system failures and supply chain issues, to make informed decisions and minimize problems. They provide expert guidance to mitigate risks and ensure business continuity.
What does enterprise risk management do?
Enterprise Risk Management (ERM) helps large corporations identify, assess, and manage risks at both operational and strategic levels. It's particularly useful for industries like finance, such as banks and insurance companies.
What are the 5 components of ERM?
The 5 key components of Enterprise Risk Management (ERM) include Strategic Planning, Risk Management Cycle, Monitoring, Continuous Improvement, and Governance, which work together to ensure effective risk oversight and management. By understanding these components, organizations can proactively identify and mitigate risks, driving long-term success and sustainability.
Sources
- https://www.wtwco.com/en-us/solutions/enterprise-risk-management-consulting
- https://www.marsh.com/en/services/risk-consulting/expertise/enterprise-risk-management.html
- https://www.kroll.com/en/services/enterprise-security-risk-management/security-and-risk-management-consulting
- https://quantivate.com/services/erm-services/
- https://www.forvismazars.com/sg/en/services/consulting/risk-consulting-services/enterprise-risk-management
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