Even in the earliest stages of implementation, Enterprise Risk Management (ERM) can improve an organization’s risk management - transitioning it from an isolated departmental view to a balanced, multi-team perspective. It is a means to aggregate and refine your business’ risk exposure assist many of your teams in making more informed decisions while evaluating it all from a more complete analytical view.
All organizations – regardless of size, structure or industry - have a myriad of risks and challenges to contend with on a regular basis. From natural perils and market volatility to regulatory compliance and employee issues, the uncertainty and unanticipated risks are embedded in everything we do. But to better ensure operational efficiencies and stability, it is critical for an organization to identify, understand and effectively manage that risk to close the gap between creating opportunity and jeopardizing success.
What is ERM?
Enterprise risk management (ERM) is a comprehensive approach to identifying, analyzing, managing and optimizing risks within an organization. ERM creates an integrated, enterprise-wide framework that highlights both the positive and the negative implications of risk at all levels of the organization. Unlike traditional risk management, ERM provides a “big picture” view that details a variety of risk exposures (such as hazards, events, operations and fiscal scenarios) and potential solutions. While not every risk identified may be insurable, understanding and preparing for unique variables and exposures can minimize situations that may not have been addressed prior.
Implementation of ERM creates a common language and unified thought process for addressing risk throughout, ERM better positions organizations to make informed decisions on allocating resources to best support their missions. When properly implemented, an enterprise risk management solution enhances organizational resiliency by improving decision making, strengthening governance, preserving scarce resources and supporting a risk intelligent culture.
Gallagher's ERM Practice
Gallagher’s Enterprise Risk Management solutions offer organizations the ability to identify, document and assess operational, hazard and strategic risks as a discipline. Using a proven methodology and process, we effectively integrate and embed ERM into existing management systems business processes to better ensure a more efficient transition and adoption rate for all business units and employees throughout your organizations.