A strategic way of supporting organizational objectives, ERM lays out the full spectrum of risks facing a corporation or agency and prioritizes them. The discipline has evolved over the past decade to provide a structured process for evaluating and managing quantitative and qualitative risks.
A key focus of ERM is to provide insights that enable companies to circumvent looming challenges and potential disasters. One real world application involves enabling companies to determine just when to undertaken maintenance of critical systems and equipment. This can prevent sudden operational failures that would have a major effect on the bottom line should they go unaddressed. Other forms of risk evaluated by ERM tend toward the human resources and operational management side of the spectrum.
An emerging discipline, ERM does not yet have widely accepted “best practice” parameters, but this is changing as executives such as Mr. Chalasani make a concerted effort to define them.