Boots on the Street

Ahren Hohenwarter

Identifying and Analyzing Risk

In a previous entry we discussed the 6 steps of both the ERM and TRM process; the first two are Identifying and Analyzing your organization’s risk.
As part of the risk management process, we look to confirm that your risk management approach supports your overall business objectives. As a business owner, what keeps you up at night? If that concern occurred, how would your income or cash flow be affected if there were unforeseen expenses or a shutdown of your operations?
Discussing the qualitative aspects of your business provides the important details needed to design a program that addresses your exposures while producing a ROI. Exposures are both qualitative and quantitative...

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...