CHAPTER 12ENTERPRISE RISK MANAGEMENT: AN INTEGRATED APPROACH
CHRIS LASZCZ‐DAVIS
The Environmental Quality Organization, LLC, Affiliated, Aluminium Consulting Engineers, 74 Overhill Rd., Orinda, CA, 94563
12.1 INTRODUCTION
12.1.1 Scope of Chapter and Benefits of an Enterprise Risk Management Approach
In today's world, change and uncertainty are constants. With increased demand for greater transparency in decision‐making, better educated and discerning citizens, globalization and technological advances, adapting to change and uncertainty (while striving for operating efficiency) is basic to sound decisions and the possibility of a viable future.
The primary benefit to having an overarching enterprise risk management (ERM) process is to evaluate and manage the potential risks of situations or systems with significant potential impact that require attention beyond the normal management processes of daily operations. Having this knowledge adds perspective and context, helps clarify what is important, facilitates decision‐making, and helps the organization make an informed decision to reduce risk.
In its simplest form, ERM is a structured, consistent, and continuous risk management process that is applied across an entire organization that brings value by
- Proactively identifying, assessing and prioritizing material risks.
- Developing and deploying effective mitigation strategies.
- Aligning with strategic objectives and business processes.
- Embedding supporting key elements into an ...