Enterprise Risk Management
Enterprise Risk Management (ERM) is a systematic and methodical approach to identifying
and managing an organization’s business risks. Enterprise Risk Management provides
a practical and time tested method to a) align risk appetite with strategic goals,
b) deploy resources more efficiently & effectively, c)reduce operational losses
and d)improve risk response.
In the wake of dynamic market conditions and regulatory initiatives, protecting
shareholders’ interests is becoming a top priority for managements across various
industries.. Today’s businesses across the globe increasingly seek better decision-making
capabilities, greater shareholder value and stronger internal controls in order
to attain greater shareholder value. External perceptions of a company are affected
by the risks it faces and the manner in which these risks are managed. While no
business is immune to risks, managing them to create a sustainable shareholder value
is the critical challenge. Businesses need to have an approach to meet this challenge.
Regulatory requirement
Clause 49 of the Securities and Exchange Board of India (SEBI) Listing agreement,
which came into effect on January 1, 2006, says:
“The Company shall lay down procedures to inform board members about the risk assessment
and minimization procedures. These procedures shall be periodically reviewed to
ensure that executive management controls risk through means of a properly defined
framework.”
The clause also makes the CEO/CFO certification on Internal Controls mandatory.
The Solution
The solution lies in having an enterprise wide initiative involving all levels of
management and steered by the Board of Directors is the need of the hour. A well-defined
Internal Control Framework (ICF) and structured approach to risk management i.e.
ERM not only limits the damage to the company but also enables it to capture opportunities
well in advance.
Benefits
Potential benefits of adopting an integrated approach to Internal Control and Enterprise
Risk Management (ERM) frameworks include:
- Develop a comprehensive understanding of risks across all levels within the organization
- Improve ability to prevent, quickly detect, correct and escalate critical risk issues.
- Align risk appetite and corporate strategy
- Improve risk responses and reduce operational surprises and losses
- Enhance comfort level of board and other stakeholders that critical risks have been
identified and are being managed in a systematic manner.
What We Do
RSM Astute can help your company address risk in several key areas, including:
- Risk Management
- Policy and Framework designing
- Risk Identification
- Risk Assessment
- Internal control assessment
- Process improvement and operational effectiveness
- Security and Technology solutions (IT business risk management, data management
and information security)
- Audit and Compliance
- Fraud and Antifraud Programs (Detection as well as Prevention)
Advantage RSM Astute
- Strategic alliance with RSM McGladrey Inc., US for contemporary solutions and access
to best practices. The combined team of RSM McGladrey and RSM Astute comprise of
over 400 specialised personnel serving clients across various industry segments.
- Structured approach and methodology based on recognized global frameworks i.e. COSO
etc.
- Skilled Risk Management professionals with extensive experience in ERM deliverables.
- Extensive use of ARMS (RSM Astute Risk Management Solution) tool.
- RSM Astute Consulting Group (along with its affiliates) together has been ranked
as the 5th largest accounting and consulting group in India (International Accounting
Bulletin - September 2010).
- Extensive experience in advisory, taxation and accounting matters across various
industries and service verticals.
- Multi-disciplinary team of professionals comprising of Chartered Accountants, MBAs,
Engineers, Company Secretaries, CISA / DISA, Cost Accountants and Law graduates.
- Indian personnel strength of over 800 people having expertise in diverse fields
and Nation wide presence.