|Enterprise Risk Management|
|Services - Management Services|
Enterprise Risk Management is defined by the US Committee Of Sponsoring Organizations Of Treadway Commission (COSO) as a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. COSO divides ERM process into eight components:
Like many Sarbanes-Oxley compliance models and approaches, most ERM models are big, complex, and cost too much. Bringabout has developed a straightforward, understandable approach to ERM. Our approach utilizes the COSO ERM Framework. This framework provides guidance on how to develop a disciplined and sustainable risk management process that is easily integrated with existing risk and/or control processes already in place (such as Sarbanes-Oxley, etc.).
Our ERM model's intent is to move a company from a passive risk management process to a formalized, embedded total ERM program where management makes decisions based on a proactive analysis and understanding of the potential risks and outcomes impacting the decision. We take a strategic view of ERM from management’s perspective with a primary objective of increasing shareholder value.
It is important that ERM be implemented in a way that is consistent with the company’s objectives and is done in a cost-effective manner. While the use of predictive modeling can be an extremely potent tool, a targeted approach to its use is best. As with any initiative that has the potential to be extremely complex and costly, we recommend keeping it simple and practical.