Enterprise Risk Management Definition
Companies have been managing risk for years. Historically, they’ve done this by buying insurance: property insurance for literal, detrimental losses due to fires, thefts and natural disasters; liability insurance and malpractice insurance to deal with lawsuits and claims of damage, loss or injury; etc. But another key element in ERM is a business risk, that is, obstacles associated with technology (particularly technological failures), company supply chains, and expansion—and the costs and financing of same.
