An enterprise risk assessment (ERA) is a systematic and forward-looking analysis of the impact and likelihood of potential future events and scenarios on the achievement of an organization’s business objectives within a stated time horizon. In many organizations, the process begins with an articulation of the governing business objectives and a common risk language to provide a context for understanding risk and the predetermined criteria needed to assess risk. Often, the assessment results are displayed on a grid or map for review by decision-makers.

This issue of Board Perspectives summarizes 10 practices that will help management and directors maximize the value derived from the risk assessment process.