What Does Enterprise Risk Management (ERM) Mean?
Enterprise Risk Management (ERM) is the practice of planning, coordinating, executing and handling the activities of an organization in order to minimize the impact of risk on investment and earnings. ERM extends the approach to incorporate not only risks connected with unexpected losses, but also strategic, financial and operational risks.
Techopedia Explains Enterprise Risk Management (ERM)
ERM allows enterprises to meet efficiency and productivity objectives and avoid resource shortages. It also ensures beneficial reporting and compliance with legal guidelines. In general, ERM helps enterprises attain expected objectives by avoiding surprises and pitfalls.
