Regardless of industry, people's understanding of enterprise risk management (ERM) varies. Traditional risk management centers on the identification, assessment and mitigation of risk. How does adding the word "enterprise" change things?
As the title suggests, ERM covers the whole organization and includes all sources of risk. However, it only very subtly hints that ERM can be strategic. ERM is more than just minimizing the downside—it is a way for organizations to seize opportunities to protect and even create value.