An enterprise risk assessment (ERA) is a systematic and forward-looking analysis of the impact and likelihood of potential future events on the achievement of an organization’s business objectives within a stated time horizon. An effective risk assessment process lays the foundation for management to respond confidently as the business environment remains in a constant state of flux. It also instills confidence in the board that management has a substantive basis for operating in a risk-filled environment.

In today’s world of evolving technologies and businesses, companies are taking on increasing levels of risk. This initiative has increased companies’ needs to employ appropriate Enterprise Risk Management (ERM) tactics in order to monitor and manage risk at the proper levels. In a world of do more at a faster pace, it is important for companies to manage their activities in a manner that can allow them to align risk strategies with overall risk management and internal control activities. Inability to do this may put the company at risk for not being able to meet strategic objectives.

We will explore a four phase process in developing a holistic enterprise risk assessment that is sustainable for any organization. The process is outlined in four stages:

• Phase One - Foundational Stage – Establish the structure
• Phase Two - Risk Identification (ID) & measurement
• Phase Three - Risk mitigation and management
• Phase Four - Reporting

Each phase is critical to successful completion and ongoing execution of an Enterprise Risk Assessment. Within each phase we will discuss the most important elements to establish to ensure the phase is properly executed and the organization is ready to move on to the next phase.