Boots on the Street

Ahren Hohenwarter

Enterprise Risk Management Vs. Traditional Risk Management – The Same… But Different

Enterprise Risk Management (ERM) and Traditional Risk Management (TRM) share many similarities.  Both ERM and TRM are methods of making, implementing, and monitoring decisions that minimize the adverse effects of risk on an organization and they both utilize the six steps of the Risk Management Process:

1.   Identify risk within your organization.
2.   Analyze those risks.
3.   Examine the feasibility of risk management techniques.
4.   Select the appropriate risk management techniques.
5.   Implement selected risk management techniques.
6.   Monitor the results of the program and revise accordingly.

Where ERM and TRM differ is in their scope...