Enterprise Risk Management
Enterprise Risk Management (ERM) is a new and emerging discipline in risk management that is gradually being assimilated and adopted into the culture of some public and private entities. An enterprise risk is an act, activity, asset, or event that prevents an organization from achieving its objectives. For example, an organization may fail to reach its objectives by failing to manage its finances through economic recession, missed strategic opportunities, reputational damage from a cyber attack or product recall, or unexpected political events either at home or abroad.
ERM is becoming an increasingly important business process tool to assist organizations to identify, prevent, and mitigate not only the kinds of losses that arise from their operations (i.e. insured property and liability losses), but also risks that arise from other acts, activities, assets, and events that prevent an organization from achieving its strategic objectives. The Risk Management and Tort Defense Division may offer a 2.5% general liability insurance premium discount to those state agencies/universities that implement comprehensive and effective enterprise risk management (ERM) programs.
If you are interested in how you may qualify for an insurance premium discount, please contact Mike Anderson at mike.anderson@mt.gov or call him at (406)444-2617. The Risk Management & Tort Defense has developed an Enterprise Risk Map to assist state agencies/universities to identify key risks associated with their enterprise and hereby offers additional resource links about ERM to help you learn more. Note: Credit given to Diedra Murray, Internal Audit, Office of the Commissioner of Higher Education for her timely and invaluable assistance in sharing many of these links with us, including her own experience at the Montana University System.
Montana University System's Enterprise Risk Management Initiative:
North Carolina State University's Enterprise Risk Management Initiative:
ERMT Manual/Handbook Examples:
- https://www.wisconsin.edu/risk-management/download/ERM_Handbook(2).pdf [wisconsin.edu]
- https://www.mtsu.edu/caerm/docs/Risk_Management_Manual_HD_Update.pdf [mtsu.edu]
- http://ir.chartnexus.com/suncon/doc/Risk%20Management%20Policy.pdf [ir.chartnexus.com]
- https://www.clayton.edu/about/docs/business-operations/enterprise-risk-management-manual-02192015.pdf [clayton.edu]
- https://www.tamuct.edu/compliance/docs/tamuct_erm_program_plan.pdf [tamuct.edu]
Federal Government (General Accounting Office) ERM Guidelines:
- https://www.gao.gov/products/GAO-17-63 [gao.gov]
- https://www.cfo.gov/wp-content/uploads/2016/07/FINAL-ERM-Playbook.pdf [cfo.gov]
University Enterprise Risk Management ERM Websites:
- https://safety.uoregon.edu/strategic-enterprise-risk-management-and-compliance-committee [safety.uoregon.edu]
- https://orec.tamu.edu/erm-compliance/enterprise-risk-management/ [orec.tamu.edu]
- https://www.wisconsin.edu/risk-management/enterprise-risk-management/#erm-process [wisconsin.edu]
- https://www.ucop.edu/enterprise-risk-and-resilience/erm/index.html [ucop.edu]
- https://governance-risk.uq.edu.au/functions-and-services/enterprise-risk [governance-risk.uq.edu.au]