Home > Property & Casualty > Managing your company’s opportunities and risks through ERM

Managing your company’s opportunities and risks through ERM

enterpriseRiskMgmtIn today’s challenging global economy, business opportunities and risks are constantly changing. Accordingly, there is a need for virtually every organization to identify, quantify, manage and monitor its business opportunities and risks. But the question for most organizations is – “What practical steps can we take to link opportunities and risks when managing the business?”

For some companies, the answer will be to implement Enterprise Risk Management (“ERM”). For others, it may be an approach in which they focus on just a few critical risks/ opportunities each year. Another option, particularly for publicly held companies, is to review their Risk Factors and assess how well each one is being managed. While there is no right answer, it’s safe to say that taking no action is the wrong answer.

As an organization contemplates how to improve its ability to identify, quantify, manage and monitor business opportunities and risks, it should begin by asking (and answering) three critical questions – “Why are we doing this? What are our objectives? How much time can we dedicate?”

What is ERM?
Simply put, ERM involves the ongoing, strategic process of identifying and managing potential events that pose risk to an organization. It takes an entity-level portfolio view of risk and requires the input from individuals from all levels of the organization in order to achieve specific objectives that will help drive the continuous improvement of the company’s risk management. Furthermore, it seeks to assure board members and management teams that business objectives have been achieved during the ERM process.

Click here to read the full white paper about ERM and how WGA can assist your organization with addressing Risk Factors.


About the Author

Rich Leavitt is the Risk Management  Practice Leader at WGA, he is responsible for the firm’s overall strategy for attracting and retaining large clients with complex risks and dynamic needs, as well as the delivery of solutions and services to those organizations. 

617.646.0283 | RLeavitt@wgains.com | Connect with Rich on LinkedIn

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