Enterprise Risk Management

Enterprise Risk Management (ERM) is a strategic approach for organisations to identify, assess, manage, and monitor risks that may affect their objectives. It integrates risk management into governance and decision-making processes, helping organisations recognise threats, evaluate their impact, and develop mitigation strategies.

In Singapore, ERM is typically aligned with international standards such as ISO 31000 and the COSO ERM Framework while shaped by regulatory expectations from regulators and governing bodies like the Singapore Exchange (SGX), Ministry of Finance (MOF), Auditor-General’s Office (AGO) and Accounting and Corporate Regulatory Authority (ACRA). By embedding ERM into your organisational culture, you can enhance decision-making and resilience, ensure compliance, navigate uncertainties and seize opportunities in a dynamic risk landscape.

Enterprise Risk Management (ERM) takes a holistic and integrated approach, contrasting with traditional risk management's focus on specific, siloed risks. ERM covers the entire organisation, addressing strategic, operational, financial, and compliance risks. It aligns with strategic objectives, defines a clear risk appetite, and proactively manages risks continuously. ERM also builds a risk-aware culture through stakeholder engagement and integrates risk considerations into all decision-making, boosting organisational resilience and strategic alignment. For organisations in Singapore, this approach is crucial in navigating complex regulatory environments and achieving sustainable growth.

ERM is vital for organisations today as it provides a structured approach to identifying, assessing, and managing risks across the entire enterprise. By proactively addressing potential threats and opportunities, ERM enhances strategic planning and decision-making. It also improves organisational resilience, ensuring that companies can effectively respond to uncertainties and sustain long-term success. Implementing ERM helps organisations comply with regulations in Singapore, align risk management with strategic goals, and build stakeholder confidence. By doing so, businesses can not only protect their assets and reputation but also capitalise on emerging opportunities.

An effective ERM framework includes key components such as risk identification to recognise potential risks, risk assessment to evaluate and prioritise them, and risk response to develop strategies for managing or mitigating risks. Continuous monitoring and reporting ensure the effectiveness of these strategies, while integrating risk management into decision-making processes embeds risk considerations in strategic planning and daily operations.

Protiviti Singapore enhances ERM frameworks by incorporating enabling technologies, aligning with COSO ERM principles, and tailoring solutions to organisational maturity and culture.

Protiviti Singapore enhances ERM processes through a structured framework that includes regular evaluations and updates. They promote collaboration for diverse insights and use data analytics for performance monitoring. Regular training programs keep employees updated on risk management practices. By fostering a culture of continuous learning, Protiviti aligns its ERM processes with industry standards.

Industries such as financial services, healthcare, government, and energy in Singapore benefit significantly from Enterprise Risk Management (ERM) due to their complex regulatory environments and exposure to diverse risks. ERM enables these sectors to proactively manage risks, ensure compliance, and enhance operational resilience.