Enterprise Risk Management (ERM)

A plan-based strategy which aims at identifying, assessing, and preparing for chances of any danger, hazards, and other potential for physical and figurative disaster which may interfere the operations and objectives of an organization is called as Enterprise Risk Management (ERM).
This not only makes corporations identify all risks that they face and decide which one to manage actively, but also involves creating a plan of action that is available to all shareholders, stakeholders and potential investors, as a part of the corporation’s annual reports. Various industries like construction, public health, aviation, international development, finance, insurance and energy, all utilize ERM.
Professionals and project managers who are working with ERM focuses on assessing the risks that are relevant to their business or industry and prioritizes those risks to make informed decisions on handling them. Risk management plans developed by them create an estimated value of impact of various disasters and may also outline the possible responses out of it. 

ERM teaches a business to see the upside of a risk as well i.e., to consider competitive opportunities and strategic advantages which could possibly arise from the deft management of risk. It also includes focusing on taking preventive measures to avoid a company’s potential disasters on their business journey.

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