Enterprise Risk Management (ERM) incorporates four key attributes:
1. Comprehensive Assessment
This key driver emphasizes that all risks should be equally taken into consideration.
2. Consistent Evaluation
All risks must be criticized on a consistent basis to efficiently identify the risks across the entire enterprise.
3. Consistent Risk Appetite
It maximizes risk-adjusted shareholder value that is applied to all decisions. It highlights the capability of the whole organization(versus individual component) to deal with the risks.
4. Value-Driven
The organization must be united with the same objective of risk management--shifting the risk-return profile of the business toward greater upside.
