Every entity, whether corporate or public, should incorporate risk management in its strategy to improve its operations and increase the success rate of its growth strategy. If future threats to an organization are known and managed, the risk of failure is no longer a handicap to its growth. VBR’s clients are large multinational corporations; mid-sized companies; educational institutions, and public sector entities. A risk management program can be customized and designed to fit the needs of every business size, in every industry, and for any growth strategy.
For many years, traditional risk management programs have effectively managed insurable risks. With an enterprise-wide approach to risk, however, entities have expanded the role of risk management to include upside risk exploitation (opportunities) as part of the strategic planning process. Basically, all sources of risk are being examined, rather than just the impact of downside risks (what can go wrong).
The centerpiece of a Value-Based Risk approach to managing risks should be a model designed to shine a bright light on the value of ERM. When implemented, you will be able to:
Quantify of the impact of risk management program. This translates into the correlation-adjusted enterprise-wide impact of risks measured in the long-term using value-based metrics rather than current period metrics (such as earnings)
Create a common language that unifies otherwise disparate ERM processes. This unified process involves a cultural shift and change in the decision-making and processes.