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15 Examples of Enterprise Risk Management

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Enterprise risk management is the identification and management of potential losses at the level of an organization. This can be contrasted with risk management at the level of a business unit, team or project. The following are illustrative examples of enterprise risk management.

Risk Identification

Risk identification is the process of identifying risks to an organization and its objectives.

Risk Analysis

Risk analysis is the practice of assessing risk probability, impact and identifying risk treatments and responses.

Risk Inventory

A tool for tracking identified risks throughout their lifecycle.

Risk Treatment

Each identified risk is treated with some combination of acceptance, avoidance, transfer, reduction and sharing.

Secondary Risk

Secondary risks are the risks that result from your efforts to treat risk. For example, if you introduce a project to address legacy system risks you are taking on project risks and operational risks related to the project.

Risk Response

A risk response is a plan for dealing with a risk that is realized to become a loss or issue. This can be contrasted with risk treatment that is about avoiding losses before they occur. Note: several enterprise risk management frameworks confusingly use the term "risk response" in place of risk treatment. Whatever the terminology, there are two fundamental types of plan for dealing with risk: preventive and corrective.

Risk Control

Implementing the internal controls required to achieve risk treatment and risk response plans.

Risk Monitoring

Monitoring risk and risk controls.

Risk Measurement

Measuring risk metrics such as risk exposure.

Risk Appetite

Developing targets for risk measurements, particularly a risk exposure target known as risk appetite.

Risk Communication

Communicating risk monitoring and measurement to stakeholders. Risk communication also includes the risk register and any documentation related to risk analysis.

Risk Integration

Integrating risk measures into the reporting and measurement tools that are used to manage an organization and business units.


Enterprise risk management frameworks often speak of risk as an opportunity. This leads to much confusion as people perceive risk as a negative thing and risk management is indeed about avoiding losses. The inclusion of opportunity as a goal of risk management is to make it clear that it is not an exercise in minimizing risk. Risk taking is the foundation of every business and risk management is designed to make risk taking more efficient. For example, an organization that mitigates risks can often take on more opportunities at the same level of risk exposure. This typically increases revenue.


Risk management is often a compliance function that is required as a basic element of corporate governance. Some organizations treat risk management as administrative overhead that doesn't add much value. Others treat it as an opportunity to take better managed risks as a fundamental tool of revenue optimization.


Resilience is a class of strategy that reduces or avoids a large number of risks. This can be described as building a healthy business and organization that resists stresses in areas such as disasters, competition and regulation. For example, a data center business that moves closer to energy self sufficiency with solar panels. This may reduce a broad array of risks in areas such as sustainability, reputation, regulatory and operational risk.


The following are common elements of enterprise risk management:


The following is an overview of enterprise risk management with additional examples.
Overview: Enterprise Risk Management
The identification and management of potential losses at the level of an organization.
Related Concepts
Next: Risk Management
More about risk management:
Acceptable Risk
Business As Usual
Business Impact
Business Risks
Calculated Risk
Cascading Failure
Contingency Plan
Contingency Planning
Disaster Preparedness
Dread Risks
Economic Risk
Financial Risk
Innovation Risk
Investing Risk
Moment Of Risk
Plan Template
Political Risk
Positive Risk
Project Risk
Reputational Risk
Residual Risk
Resource Risk
Risk Acceptance
Risk Analysis
Risk Appetite
Risk Awareness
Risk Capacity
Risk Communication
Risk Contingency
Risk Control
Risk Culture
Risk Estimates
Risk Evaluation
Risk Exposure
Risk Impact
Risk Intelligence
Risk Management
Risk Matrix
Risk Measurement
Risk Mitigation
Risk Monitoring
Risk Objectives
Risk Prevention
Risk Probability
Risk Profile
Risk Reduction
Risk Register
Risk Response
Risk Sharing
Risk Taking
Risk Tolerance
Risk Treatment
Risk Trigger
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Special Risks
Strategy Risk
Tactical Risk
Technology Risk
Unknown Risks
Upside Risk
More ...
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Risk Management

An overview of the risk management process.

Business Risk Management

An overview of common business risk management techniques.

Disaster Preparedness

The definition of disaster preparedness with examples.

Risk Prevention

The definition of risk prevention with examples.

Err On The Side Of Caution

The definition of err on the side of caution with examples.

Risk Appetite

The common types of risk appetite.

Risk Awareness

The common types of risk awareness.

Risk Culture

An overview of the common types of risk culture.

Contingency Plan

An overview of contingency plans with complete examples.

Risk Analysis

A complete guide to risk analysis.

Risk Probability

The common ways to model risk probability.

Qualitative Risk Analysis

A definition of qualitative risk analysis with an example.

Cost Of Risk

A definition of cost of risk with examples.

Risk Perception

A definition of risk perception with examples.

Risk vs Hazard

The difference between a risk and a hazard with examples.

Swot Threats

A list of threats for SWOT analysis.

What-if Analysis

The definition of what-if analysis with examples.

External Factors

A list of common external factors.

Risk Exposure

A definition of risk exposure with example calculations.
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