Evolving enterprise risk management ERM with BusinessRiskTV

Enterprise risk management (ERM) is a process that helps organisations identify, assess, and manage risks. It is a strategic approach to risk management that takes into account the entire organisation, not just individual departments or functions.

ERM has evolved over time, and the UK has been at the forefront of this evolution. In 2002, the Turnbull Report was published, which set out a framework for ERM in the UK. The report was followed by the Cadbury Report in 2003, which further emphasised the importance of ERM.

In recent years, there has been a growing focus on the role of ERM in sustainability. The UK government has published a number of reports on this topic, including the Green Finance Strategy in 2019 and the Sustainable Finance Roadmap in 2021. These reports have highlighted the importance of ERM in helping organizations manage their environmental, social, and governance (ESG) risks.

The evolution of ERM is likely to continue in the years to come. As the world becomes increasingly complex, organisations will need to find new ways to identify and manage risks. ERM will play a key role in helping organisations achieve their strategic objectives and manage their risks effectively.

Here are some of the key trends that are likely to shape the future of ERM:

The rise of artificial intelligence (AI) and machine learning (ML). AI and ML are already being used to automate many aspects of risk management. In the future, they are likely to play an even greater role in identifying, assessing, and managing risks.

The increasing focus on sustainability. As the world becomes more aware of the impact of climate change and other environmental issues, organisations will need to find new ways to manage their ESG risks. ERM will play a key role in helping organisations achieve their sustainability goals.

The growing importance of data. Data is becoming increasingly important in risk management. Organisations are collecting more data than ever before, and they are using this data to better understand their risks. In the future, data is likely to play an even greater role in ERM.

The need for greater transparency. In recent years, there has been a growing focus on the need for greater transparency in risk management. Organisations are being held more accountable for their risks, and they are being required to disclose more information about their risk management practices. In the future, the need for greater transparency is likely to continue.

These are just some of the key trends that are likely to shape the future of ERM. As the world becomes more complex, organisations will need to find new ways to identify and manage risks. ERM will play a key role in helping organisations achieve their strategic objectives and manage their risks effectively.