Enterprise Risk Management

Enterprise Risk Management (ERM) provides a comprehensive framework for identifying, assessing, responding to, and monitoring risks across the entire organization in a coordinated manner. Unlike siloed approaches, ERM recognizes risk interdependencies and enables portfolio-level risk oversight aligned with strategy. Modern ERM frameworks, such as COSO ERM and ISO 31000, emphasize integration with strategy-setting and performance management. For example, a healthcare system implements ERM by establishing a Chief Risk Officer role, creating cross-functional risk committees, maintaining an enterprise risk register, linking risks to strategic objectives, and providing integrated risk reporting to the board for informed governance decisions.