Advantages:
- Enterprise Risk Management can increase the range of opportunities:
By considering both the positive and negative aspects of risk management, an organisation can identify new opportunities and unique challenges associated with the current prospects.
- Understanding the impact of risks across the whole organisation:
Every part of an organisation faces risks which can impact and affect another part of the organisation. Enterprise Risk Management enables you to identify and manage these risks to continue and improve performance.
- Increasing positive outcomes and reducing negative surprises:
Enterprise Risk Management allows organisations to identify risks and establish appropriate responses, reducing the risk of the unknown and related costs or losses whilst profiting from advantageous developments.
- Reduces the risk of variable performance:
Enterprise Risk Management allows organisations to plan for the risks that may affect performance and enable them to put in place the actions needed to minimise disruption and maximise opportunity.
- Improves resource allocation:
Every identified risk requires some sort of resource. Having a robust risk management plan enables an assessment and prioritisation of resources to enhance resource allocation.
- Enhances enterprise resilience:
An organisation’s medium and long-term survival depends upon its ability to anticipate and respond to change, not only to survive but to evolve and thrive.
