Enterprise Risk Assessment
A strategy based approach to Enterprise Risk Assessment
Focused on strategy and mitigating risks
As the economy slowly recovers from the financial crisis, companies are shifting their focus from crisis management back to strategic growth. Enterprise Risk Management (ERM), is now more than ever, a leading discussion among board members. The challenge to ERM is finding a practical, yet substantive, approach to identifying and managing organizational risk. Despite ongoing popularity, current guidance on applying a risk-based approach still leaves room for improvement. Analyzing each risk in isolation is not reflective of ‘real world’ scenarios, where risks compound with potential catastrophic consequences.
Stemming from our deep expertise in Internal Audit and Process Improvement Elevate believes risk management should begin by understanding the business strategy. Our strategy based approach ensures your risk assessment program is focused on only the risks that have an impact on what you’re trying to achieve.
In addition, using mathematical models, we calculate the correlation between your ability to achieve your strategy and the impact of each risk identified by your executive team. Understanding the correlation between strategy and risk provides unique and underlining risk patterns that could potentially lead to the ‘black swan’ events.
Elevate believes pattern analysis is critical to understanding how your risks impact and correlate with your strategic initiatives.
While current risk based management programs commence with identifying risks, our Strategy Based Approach truncates the process by first understanding what your organization is trying to achieve. Once the key drivers to an organization’s strategy are defined, the motivations and decisions that management is willing to take (the ‘risks’) are easier to identify and understand. Elevate’s Strategy-based approach, enables the following analysis:
- Concentrates on all risks that threaten the achievement of the company’s goals – including the potential ‘Black Swan’ events
- Analyzes and measures the company’s capacity to achieve the goals
- Keeps a balanced, focused and more cost effective approach to risk mitigation efforts