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Risk Management
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ALSO CALLED: Managing Risk, Enterprise Risk Management, Loss Management, Business Risk Analysis, and IT Risk Management
DEFINITION: Enterprise risk management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimizethe effects of risk on an organization's capital and earnings. Enterprise risk management expands the process to include not just risks associated with
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RISK MANAGEMENT DEFINITION (continued):
accidental losses, but also financial, strategic, operational, and other risks. In recent years, external factors have fueled a heightened interest by organizations in ERM. Industry and government regulatory bodies, as well as investors, have begun to scrutinize companies' risk-management policies and procedures. In an increasing number of industries, boards of directors are required to review and report on the adequacy of risk-management processes in the organizations they administer. Since
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