So, What is Enterprise Risk Management?
In September 2004, The Committee of Sponsoring Organizations of the Treadway Commission (COSO) published an Executive Summary on ERM titled, “Enterprise Risk Management – Integrated Framework.” This Executive Summary defines ERM as a process effected by an entity’s Board of Directors, management and other key personnel aimed at making an organization more profitable by creating a single view of all risks, internal and external, and creating an executive level management strategy to deal with those risks (COSO 2004). Key aspects of ERM include analyzing multiple risks “across the enterprise” rather than in separate risk silos and elevating risk management as a strategic partner in achieving corporate goals and objectives.
