Risk management protects and adds value to the organization and its stakeholders through supporting the organization’s objectives by:.

Enterprise Risk Management (ERM), if effectively practised, supports the achievement of organisational/business objectives in three main ways.

1. Improves Organisational/Business Performance by:

• enhancing readiness for change and/or what otherwise may have been 'the unexpected'
• minimising the frequency and/or magnitude of losses
• evidences robust framework for regulatory compliance and Internal Audit '3rd Line of Defence' assurances
• facilitates proactive identification and communication of inherent risks and therefore allows better appreciation of potential effects on profits and or capital financing
• helps a more confident and informed approach to investment in new projects and value creation.

2. Helps Establish Competitive Advantage by

• integrating risk management with strategic planning/management e.g. building distinctive/unique competencies, identify business opportunities that match core risk management competencies, etc
• the application of ever more increasingly effective risk assessment methodologies
• protecting corporate reputation and brand image
• more cost effective application of available resources e.g. removing unnecessary/duplicative controls, more cost effective solutions to common/corporate-wide risks.

3. Optimises the costs of risk management by

• applying a systematic and consistent methodology across the whole of the organisation (rather than in a 'scatter gun' manner)
• ensures strategic planning and management processes are aligned with the entity's risk appetite and therefore the potential cost of unmitigated risks are appropriately assessed and understood
• understanding the cost effectiveness of alternative risk mitigation options e.g. risk transfer via insurance.

Delivering projects;

• On Time
• In Budget
• with the desired Quality