The performance and survival of a business in a global economy depends on understanding and managing the risks-external and those embedded within its operations. It is vital to identify and prioritize significant risks and detect the weakest points. Adding other elements to an essential ERM program, such as PESTEL and Porter’s 5 forces, treatment plans, scorecards, the three lines of defense (3LoD) components, and process improvements (six sigma, 8D, etc.) significantly increases the ERM success rate. The authors outline a comprehensive strategy to designing and implementing a robust and successful ERM program - and not just successful in implementation but also yielding enormous returns for the organizations that implemented this enhanced ERM program.
