ERM: Quantifying the Potential Impact of Major Risks on Financial Performance



Organizations have been using risk management tools to help executives come to consensus on the fastest-moving, highest-impact risks that could disrupt a company’s strategy or current operating model.

What's more difficult is quantifying the potential financial impact that accompanies a truly large business risk. Still, there is evidence that enterprise risk managers—the ERM leaders who communicate regularly with the c-suite and the board—are reaching for assessment tools that rely on quantification, not just group opinion. True best-practice ERM leaders are trying to clarify how much actual shareholder value is at stake given a major risk that has been identified. 

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