Strategic ERM is the practice of using risk information to make more informed risk-based tactical and strategic business decisions and represents a paradigm shift in risk management thinking. The basic principles underlying Strategic ERM were invented long ago by the insurance industry, specifically the actuarial profession. Our contribution has been to integrate the elements into a comprehensive framework and to provide the tools and techniques that make Strategic ERM feasible and practical.
Strategic ERM helps organizations address some of their most important risk management challenges. For example, it provides the most accurate, comprehensive and systematic method of identifying/assessing one’s key risks in the context of one’s risk tolerance. It also helps executives manage risk-reward trade-offs across their entire portfolio of risks.
For a full explanation of the benefits of Strategic ERM and how to implement this new approach to managing risk, please refer to this free research paper: Fundamentals of Risk Management (coming soon) and/or attend one of our upcoming webinars or seminars.