Enterprise Risk Management (ERM) represents a fundamental paradigm shift in the way businesses view risks. Unforeseen areas of risk represent the major management challenge, as enterprises tackle implementation of their risk management strategy. 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 that businesses must manage.

Globally, enterprises are choosing to implement an Enterprise Risk Management framework to ensure that a uniform approach to risk identification, measurement, and treatment is utilized across the organization. By adopting this proactive approach to managing risk, companies can move from a “silo” management approach, to a deeper integration of its various businesses.

While ERM is a process and a methodology, and as such can be applied to the entire organization's risk profile, it can be easily applied to meet specific concerns and objectives. By taking an enterprise-wide view of factors that shape those concerns and objectives, ERM provides an aerial-analysis of direction - a radar screen, from which your business can track risk and resources.

CTE's Enterprise Risk Management framework provides an enhanced capability for enterprises to:

Align Risk Appetite and Strategy: Risk appetite is the degree of risk, on a broad-based level, that a company or other entity is willing to accept in pursuit of its goals. Management considers the entity’s risk appetite first in evaluating strategic alternatives, then in setting objectives aligned with the selected strategy, and in developing mechanisms to manage the related risks.

Link Growth, Risk, and Return: Entities accept risk as a part of value creation and preservation, and they expect return commensurate with the risk. Enterprise Risk Management provides an enhanced ability to identify and assess risks, and establish acceptable levels of risk relative to growth and return objectives.

Enhance Risk Response Decisions: Enterprise Risk Management provides the rigor to identify and select among alternative risk responses: risk avoidance, reduction, sharing, and acceptance. It also provides methodologies and techniques for making these decisions.

Minimize Operational Surprises and Losses: Entities have enhanced capability to identify potential events, assess risk, and establish responses; thereby, reducing the occurrence of surprises and related costs or losses.

Identify and Manage Cross-enterprise Risks: Every entity faces a myriad of risks affecting different parts of the organization. Management needs to not only manage individual risks, but also understand interrelated impacts.

Provide Integrated Responses to Multiple Risks: Business processes carry many inherent risks, and Enterprise Risk Management enables integrated solutions for managing those risks.

Seize Opportunities: Management considers potential events, rather than just risks; and, by considering a full range of events, management gains an understanding of how certain events represent opportunities.

Rationalize Capital: More robust information on an entity’s total risk allows management to more effectively assess overall capital needs, and improve capital allocation.

The CTE’s Enterprise Risk Management framework is an enabler of the enterprise risk management process. Enterprise Risk Management is interrelated with corporate governance by providing information to the board of directors on the most significant risks, and how they are being managed. And, it interrelates with performance management by providing risk-adjusted measures, and with internal control, which is an integral part of enterprise risk management.

The CTE's Enterprise Risk Management has helped diverse organizations from governments to universities achieve performance and profitability targets, and prevent loss of resources. It helps ensure effective reporting.

With specialized industries, ERM suites customized to various verticals like Pharmaceuticals (refer industry solutions), the CTE' Enterprise Risk Management framework helps ensure compliance with laws and regulations, avoiding damage to its reputation, and other consequences. In sum, it helps an enterprise get to where it wants to go, and avoid pitfalls and surprises along the way.