Risk does not always come in small, neat packages. Regulators and stakeholders increasingly want to know how risk is being managed across the whole of the business. An enterprise risk management framework addresses these concerns.

Risks such as those arising from competition, loss of staff and changes to legislation need to be understood and linked to an organisation’s corporate strategy. Monitoring systems should be put in place so that everyone contributes to managing an organisation’s risks.

To achieve this, Marsh has developed an enterprise risk management framework. The framework identifies five components that need to be addressed in order that risk management procedures are fully embedded into operations. By combining all five components, an organisation will have the framework to directly link its risk management practices to its goals and strategies.

Marsh offers a practical approach to adopting this framework and in meeting an organisation’s needs. Through the use of desktop analysis, participation-led interviews, risk workshops and best practice methodologies, Marsh draws on its extensive global experience and expertise to deliver enterprise risk management to companies in many industry sectors in Australia.

The benefits of adopting an enterprise risk management approach are:

• More efficient capital allocation and stronger financial outlook by focusing resources where they are needed most
• Better risk information for board members, investors and stakeholders
• Clearer understanding of risk across all operations
• Assistance in ensuring that corporate governance regulations are satisfied
• Improved risk awareness leading to improved risk taking

The Marsh Risk Consulting Practice offers global expertise and extensive local knowledge to help companies in Australia develop their enterprise risk management strategies and achieve their goals. Marsh is the acknowledged leader in risk management and our consulting team is well experienced in delivering enterprise risk management solutions to a host of industry sector.