ERM is a relatively new concept.  There is a robust discussion among experts what it really means.  Common ERM elements in most definitions include:

• Follows a Governance, Risk, and Compliance (GRC) approach to business.
• Is applied in strategy and tactical settings.
• Is a top down approach to business system management and execution.
• Is designed to identify potential events and risks that can impact the organization.Is a management system that can be architected, designed, deployed, managed, and assured.Is a management system that can be applied at various organizational levels including: 1. Enterprise level; 2. Programmatic/Project/Process level; and 3. Product/Transactional level.  Please see figure on the right.
• Is based on the risk appetite and tolerance of the organization.
• Is focused on the achievement of business objectives.
• Provides reasonable assurance on the achievement of business objectives.
• Is a risk management process that has inputs, involves a consistent process and has outputs.
• Is managed by people at every level of an organization and including the supply chain.

Lesson Learned:  ERM is the end state of the RBT journey.

Bio:

Greg Hutchins PE and CERM (503.233.101 & GregH@QualityPlusEngineering.com)  is the founder of:

CERMAcademy.com
800Compete.com
QualityPlusEngineering.com
WorkingIt.com

He is the evangelist behind Future of Quality: Risk®.  He is currently working on the Future of Work and machine learning projects.

He is a frequent speaker and expert on Supply Chain Risk Management and cyber security.  His current books available on all platform are shown below: