Enterprise Risk Management (ERM) as a term has developed over recent years to mean differing things to different people. In Marsh’s experience the key signature of ERM as a definition is that it is:

"A structured and embedded approach that supports the alignment of strategy, processes, people, technology, and knowledge with the purpose of evaluating and managing the uncertainties an organisation faces as it creates value. In so doing equip the organisation with quality management information to make decisions more effectively and with more confidence"

The essence of ERM is built around the pragmatic use of risk management as an effective management tool and to be a significant driver of value. In today’s economic climate, the demand for a more comprehensive approach to risk management to ensure that risks and opportunities are systematically identified and the risk responses are developed has never been more critical.

Critical questions you need to consider:

• How does your organisation ensure that key risks to its strategy are identified and effectively mitigated to an acceptable level?
• To what extent is your organisation using risk management strategy and process to communicate the robustness of the business to key stakeholders (external investors, regulators, business partners, key customers)? 
• To what extent are senior management risk profiling key issues in order to make business decisions in a cost-effective, efficient and fully informed manner?
• Are you confident that you are gaining maximum value from your investment into risk management?