Enterprise Risk Management (ERM)

PRIMARY CONTACTS:
James B. Yard CPA, CIA, CISA 
Tony P. Ielase, CISA

In today's volatile business environment, risk landscapes are changing more rapidly and with a greater impact than ever before.

The pandemic has magnified risk management as a competitive advantage. Effective Enterprise Risk Management (ERM) is a critical enabler for strategy execution. It creates greater confidence in decision-making and achieving operational and strategic objectives while effectively enabling risks and opportunities to be actively managed.  The value is in the discipline surrounding key events to realize opportunities, minimize disruptions, manage adverse events and limit financial ramifications. 

ERM Volatile Business Environment Diagram

How Can Schneider Downs Help?

Our team of risk advisory professionals assist our clients in developing, optimizing and transforming their risk management processes.  Combining deep industry expertise with repositories of leading practice tools and accelerators, we act as a strategic advisor to implement changes to your ERM program to achieve value and minimize surprises. Our ERM service offerings include:

ERM Program Assessment – Review current ERM framework and program against leading practices to identify tangible actions to enhance ERM activities, improve program acceptance and integrate ERM management with underlying business processes.

ERM Program Development – Provide guidance on appropriate governance, processes and infrastructure to support the target risk management culture and objectives.

Enterprise Risk Assessment – Execute activities to identify, analyze, prioritize, manage, monitor and report top risks. Download our Key Questions to Consider When Conducting an Enterprise Risk Assessment to get started. 

Risk Action Plans, Monitoring and Reporting – Develop and implement tools, templates and content to monitor and report risks and risk measures, risk management strategies and plans, and risk management program activities.

Risk Analytics – Develop and implement Key Risk Indicators (KRI’s) to better understand individual risks, risk inter-relationships, aggregate risk exposure and risk appetite and tolerance.

Risk Management Sourcing – Outsource or co-sourced risk management program activities, including risk assessments, monitoring and reporting, and analytics.

Benefits of ERM 

  • More effective strategic and operational planning
  • Planned risk-taking and the proactive management of risks
  • Greater confidence in decision making and achieving operational and strategic objectives
  •  Greater stakeholder confidence
     
  • Enhanced organizational resilience
  • Dealing effectively with disruptions and losses, minimizing financial impact
  • Avoid surprises through forward planning
     
  • Regulatory compliance and director protection
  • Identifying and managing risk entity-wide
     
  • Increasing positive outcomes and advantage while reducing negative surprises
  • Reducing performance variability
  • Improving resource deployment

 


ERM Program Good and Bad Chart

ERM Key Questions When Conducting an Enterprise Risk Assessment

Are We Taking the Right Risks?

  • How are the risks we take related to our strategic objectives?
  • Do we know the significant risks we are taking?
  • Do the risks we take give us a competitive advantage?
  • How are the risks we take related to activities that create value?

Are We Taking the Right Amount of Risk?

  • Are we getting an adequate return that is consistent with our overall level of risk?
  • Does our organizational culture promote or discourage risk-taking?
  • Have we defined our risk appetite and aligned with the Board?
  • Is our actual risk-taking consistent with our risk appetite?

Are We Adequately Managing Our Risk?

  • Is our risk management process aligned with our strategic decision-making process and existing performance measures?
  • Is our risk management process coordinated and consistent across the entire enterprise? 
  • Does everyone use the same definition of risk?
  • Do we have gaps and/or overlaps in our risk coverage?

Ready to get started?

Contact us to learn more about Schneider Downs Enterprise Risk Management services. ERM is just one of the many risk-based advisory services offered by Schneider Downs, explore our additional services on our Risk Advisory Services homepage.

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