EBI Publications

With the increased focus on the concept of ERM after the 2008 financial crisis, as an integral component of an institution’s overall business strategy, many standardized definitions for ERM were developed. The United Nations defines ERM as; an organization-wide process of structured, integrated and systematic identification, analysis, evaluation, treatment and monitoring of risks towards the achievement of organizational objectives. In addition, the Risk Management Associations ERM council defines ERM as “the management capability to manage all business risks in pursuit of acce ptable returns.” Enterprise Risk Management: Financial Infos Issue (25) Enterprise risk management (ERM) is the process of planning, organizing, leading, controlling and reporting activities to manage cross-enterprise risks (that cross multiple functions, occur in support activities, and is related to or underlie other risks) of an organization in order to minimize the effects of risk on an organization's objectives, capital and earnings. Enterprise risk management expands the process to include not just risks associated with accidental losses, but also financial, strategic, reputational, operational, and other risks.