Enterprise risk management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects ofrisk on an organization's capital and earnings.

Enterprise Risk Management is characterized by several important elements:

• Executives and directors are involved in this process
• All corporate departments and the ecosystem, including the supply chain, can expose the organization to potential risks and threats
• Any activity (financial, legal, operational, marketing etc.) can produce risks for the enterprise

It follows that quickly identifying all the phenomena is a crucial element to help companies mitigate (or completely avoid) risks. Managing risks allows companies to achieve their goals and objectives and, more importantly, to add value.

System audits are one of the key management tools for achieving the objectives set out in the policy of the organization. A system audit is a disciplined approach to evaluate and improve the effectiveness of a system. Audits are carried out in order to verify that the individual elements within the system are effective and suitable in achieving the stated objectives.

System audit is defined as “A systematic and independent examination to determine whether activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives.”

System audit is also defined as “A systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled.”

• System audits are usually carried out for the following objectives.
• To evaluate the organization system against a system standard
• To determine the conformity or non conformity of the system elements with the specified requirements
• To determine the effectiveness of the implemented system in meeting the specified objectives
• To offer an opportunity for improvement in the system

In the latest approach to the systems audit, the auditors are expected to go beyond mere auditing for the compliance by focusing on risk, status, and importance. This means they are expected to make more judgments on what is effective, rather than merely adhering to what is formally prescribed.

Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business processes. Violations of regulatory compliance regulations often result in legal punishment including federal fines.

Companies across all industries are navigating a global proliferation of diverse regulatory requirements, stakeholder expectations, and business model changes. Companies are challenged to comply with laws and regulations while also increasing shareholder value and protecting their brand. These challenges are acute in highly regulated industries such as financial services, health care, and life sciences where the compliance agenda has evolved beyond mere compliance to include strategic issues such as:

• Predicting the impact of emerging regulations on strategic direction, business model and compliance/risk management processes and systems
• Determining the right compliance roles and accountabilities between legal, compliance, audit and business functions
• Driving compliance culture change across diverse geographies, functions and teams
• Defining and measuring Compliance value and managing performance expectations
• Managing through crisis and remediation in more complex and diverse environments
• Developing integrated compliance capabilities to better anticipate global trends, increase efficiency, and participate in the evolution of the company’s core strategies

Strategic Risk Management (SRM) is a process performed by management for identifying, assessing and managing risks and uncertainties, affected by internal and external events, scenarios and risks that could impede an organization's ability to achieve its strategy and strategic objectives.

Strategic risk management is a crucial but often overlooked aspect of enterprise risk management (ERM). While ERM has traditionally focused on financial and, more recently, operational risk, the fact is that strategic risk is far more consequential.

Strategic risk management is the process of identifying, quantifying, and mitigating any risk that affects or is inherent in a company’s business strategy, strategic objectives, and strategy execution. These risks may include:

• Shifts in consumer demand and preferences
• Legal and regulatory change
• Competitive pressure
• Merger integration
• Technological changes
• Senior management turnover
• Stakeholder pressure

Investments in cybersecurity services are at an all-time high. Yet cyberattacks are still on the rise, both in number and sophistication. Technology innovation can vastly accelerate performance, but opens new doors for cyber criminals. Learn how you can lead, navigate, and disrupt in a complex cyber landscape.

Cyber risk commonly refers to any risk of financial loss, disruption or damage to the reputation of an organization resulting from the failure of its information technology systems. Cyber risk could materialize in a variety of ways, such as:

• Deliberate and unauthorized breaches of security to gain access to information systems.
• Unintentional or accidental breaches of security.
• Operational IT risks due to factors such as poor system integrity.

Poorly managed cyber risks can leave you open to a variety of cyber crimes, with consequences ranging from data disruption to economic destitution. In many cases, businesses will also find themselves in the middle of a public relations nightmare as they struggle to recover lost assets and prevent further theft.
Whether you’re a small business or a multi-million dollar corporation, cybercrime could be lurking right around the corner. In fact, more small businesses are being targeted by cyber criminals than you might imagine, and without the right preventative measures in place, yours could be next.

The more sophisticated and extensive a business’ digital operations, the higher the cyber risk involved. The following are some elements that can increase cyber risk; consider which ones might apply to your company:

• Employees or customers accessing your system from remote locations.
• Staff using company-owned devices at their homes or while traveling.
• Employee access to administrative privileges on your network or computers.
• A Bring Your Own Device (BYOD) policy in the workplace.
• Public building access (without the use of an ID card).
• Employees using computers to access bank accounts or initiate money transfers.
• A lax policy when it comes to regularly updating passwords.
• Critical information that would be lost in the event of a network disaster.
• Neglecting to review your company’s cyber security policies over the last 12 months.

All businesses face the risk of a cyber breach at some point during their life cycle, but understanding your risk level – and where the threats could come from – can go a long way to preparing an effective response

Property and casualty insurance are often sold together in a lumped business policy called property casualty insurance. However, each type of insurance covers very different aspects of a business. Even though they usually are purchased in tandem, business owners should understand what each covers and how they protect the business.

Commercial property insurance covers your buildings and the contents of those buildings, including inventory, equipment and other assets, in the event of a loss. This coverage is important for businesses because it provides protection against losses from theft, accidents and other causes.

Commercial casualty, or commercial liability, coverage provides protection to a business against lawsuits for injury, property damage or negligence caused by the business. Most lenders and others with financial stake in a business require the business to have casualty coverage. Casualty insurance will protect a business if a customer gets hurt on the property.