The ERM enables the corporate governance to consider the potential impact of all types of risks on all processes, activities, decisions, products and services throughout the value chain. This should result in enhanced compliance, assurance and strategic decision-making.
The definition of risk used in the context of the ERM examines the possibility that an event will occur and adversely affect the achievement of objectives.
The ERM process is designed to identify potential events that may affect the corporation, to manage risk to be within its risk appetite, and to provide reasonable assurance regarding the achievement of corporate objectives. All efforts are made to ensure that risk management and internal controls are fully integrated in the operating management system.
Evolution of Our Understanding of Risk