Executives of large corporations have been talking about enterprise risk management (ERM) for many years. Few terms in the business lexicon are causing more confusion and miscommunication. Business managers are seeking a universal understanding of what ERM is, and there really isn’t one. As a result, a small number of business leaders have a good understanding of the value proposition of ERM.
To reduce the confusion and miscommunication within an organization, it is important to operate under one definition of ERM. This article aims to help organizations reduce miscommunication around ERM and provides a five-step guideline for ERM implementation.