What is enterprise risk management and how does it work?
Enterprise risk management (ERM) is the practice of managing risk across an entire organization as one connected picture rather than as a set of separate departmental concerns. What changes when you adopt it is the purpose of the risk data itself. In most compliance programs, risk information exists to satisfy an auditor or fill a quarterly report. Under ERM, that same data has to be good enough to shape strategy, which raises the bar on how it gets scored, owned, and refreshed.