Company logo for “The ALS Group” featuring a stylized blue and white lightburst graphic

Why Enterprise Risk Management?

Enterprise Risk Management (ERM) allows businesses to manage risk by managing all threats and opportunities throughout all levels of the organization.

In a rapidly changing corporate governance environment, business leaders face increasing uncertainties. Increasing scrutiny from regulatory agencies, stockholders and an increasingly well-informed public means that senior management must effectively identify, evaluate and proactively manage risk throughout the organization.

Even the best-run organizations may fail to meet their objectives due to material loss, employee disengagement, reputation damage, or lost opportunity. Without appropriate risk monitoring and loss mitigation systems in place, every business is at risk of catastrophic losses.

TOP 5 REASONS FOR AN ERM APPROACH

An interconnected set of seven puzzle pieces labeled with different aspects of enterprise risk management.

BUILDING YOUR ERM APPROACH – AN INTERACTIVE PROCESS…

Building a dynamic ERM framework that aligns with each business’s unique requirements is critical to ensuring the success of any complex organization. Whether protecting your intellectual property, strengthening your supply chain, or guarding against cyber risk, a robust ERM program helps to ensure organizations move beyond compliance, building a comprehensive strategy that provides the organization with both strategic vision and bottom-line value.

It is important to remember that the process needs to start and progressively mature. The ALS Group builds in ERM “methodology” within each engagement structure as clients choose to mature differently through the process.

Flowchart outlining a comprehensive Enterprise Risk Management process

Our team will:

ERM allows your organization to effectively prioritize your risk exposures and react swiftly to daily operational and emerging risks, as well as seize opportunities as they arise across many aspects of the company.

How Enterprise Risk Management Contributes to Organizational Strength

ALIGNING RISK APPETITE AND STRATEGY

Your organization’s Risk Appetite is integral in developing the ERM tactics you need to meet your current business objectives. Our management consulting team helps you determine the specific and aggregate financial impact your company can absorb so we can develop strategic alternatives that match your organization’s risk threshold. We can guide you in setting risk management objectives and assist you in developing risk mitigation techniques and strategies.

REDUCING OPERATIONAL RISKS AND LOSSES

Operational risks change constantly as your organization realigns business strategies, manufacturing processes, or increasingly relies on technological solutions. Yet your loss history may not reveal the current and future risks you face. Often slight improvements to business processes, supply chains, or personnel can dramatically reduce your organizational risk. We help your company identify potential threats and opportunities, establish appropriate responses, and reduce associated costs, losses, or missed opportunities.

ROBUST AND TRANSPARENT RISK MANAGEMENT

A robust ERM system simplifies the identification and management of risks across all business platforms. With thorough risk review and risk management assessments, you can quickly address both current and emerging risks. Communicating accurate and timely risk management information with your Board and senior management helps you meet corporate governance guidelines, ensures managers quickly respond to emerging risk, and strengthens your company’s valuable reputation.

A risk register spreadsheet embodying Enterprise Risk Management principles displays various project risks.

STRENGTHENED DECISION MAKING

By properly capturing and analyzing pertinent risk information, your senior management team can effectively assess overall capital needs and enhance resource allocation. We help you analyze priorities and the costs and benefits of various risk controls. Embracing risk in accordance with your organization’s risk tolerance allows you to prioritize and achieve strategic business goals.

RISK COMMUNICATION BUILDS SUCCESS

Through effective training and communication, your organization embeds consistent risk management strategies throughout the organization. No organization wants to do damage control, whether it is attempting to mitigate an operational loss or repairing a damaged reputation. With effective risk communication, your organization can proactively meet both strategic challenges and growth opportunities.

A female finance businesswoman checking the company's financial capital report From graph paper At t

ERM BUILDS ORGANIZATIONAL BENCH STRENGTH

Today’s business face increasingly difficult challenges both from within and outside the organization. With a solid ERM program in place, you can improve the quality of both internal and external customer service, protect your financial and human capital resources, and safeguard your organization’s valuable reputation.

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