How the NC State ERM Initiative Views ERM vs. Traditional Risk Management
If a business has its doors open, then it is managing risk in some way. However, that does not mean the organization has an enterprise-wide, holistic, and strategic approach to risk management. Unfortunately, for many organizations, risk management is done through a silo or stove-pipe approach where certain types of risks are managed in silos with little consideration of how risks might interact or impact other areas (silos) of the business.
Dr. Mark Beasley, Deloitte Professor of ERM and Director of NC State’s ERM Initiative, describes the vision of the Enterprise Risk Management Initiative at NC State University, explains how enterprise risk management leverages work done in a silo or stove pipe approach to bring together risks from all across an enterprise so that boards and senior management have a better view of potential emerging risks most likely to impact the strategy of the organization.