Explore Enterprise Risk Management

Across the globe, especially in developed economies, risk management has gained significant importance in how leaders run their businesses. Given the rise in business failures, evolving regulatory landscape and complex changes affecting businesses including unforeseen crisis like situations such as the COVID-19, organisations have started to realise the importance of risk and crisis management as a tool for enhanced strategic value for sustainable business growth. ERM is applicable to start-up and family business owners, business leaders, and professionals from human resources, procurement, supply chain, marketing, legal, sales, research & development departments who want to adopt risk-intelligence in their role. Because risk is inherent in everything we do, the type of roles undertaken by IRM qualified professionals is incredibly diverse. ERM covers the following types of business risks with broad knowledge and the practical skills you need to manage them.

Taxonomy of Business Risks (used as risk code by organisations)

Financial	Geopolitical	Technology	Environmental	Social	Governance
Economic Outlook Recession Stagination Contraction Credit Crises Steady Growth Expansion Acceleration Peak	Business Environment (Country Risk) Talent Availability Industrial Action Minimum Wage Hike Sanctions Territorial Disputes Logistics Restrictions	Disruptive Technology E-Commerce Gig Economy Artificial Intelligence 5G Technology Blockchain Robotics & Automation Augmented/Virtual Reality Cryptocurrency Autonomous Vehicles Drones Medical Advances	Extreme Weather Flood Tropical Windstorm Temperate Windstorm Drought Freeze Heatwave Wildfire	Socioeconomic Trends Ageing Population Gender Imbalance Wealth Inequality Poor Educational Standards Migration	Non-Compliance Emerging Regulation Internal Corruption & Fraud Negligence Revised Accounting Standards Occupational Health & Safety
Economic variables Commodity Price Fluctuation Inflation Interest Rates	Corruption & Crime Corruption Deterioration Crime Wave/Piracy Increase Slavery Practices	Cyber Data Exfiltration Contagious Malware Cloud Outage Financial Theft Distributed Denial of Service Internet of Things Industrial Control Systems Internet Failure	Geophysical Earthquake Volcanic Eruption Tsunami	Human capital Failure To Attract Talent Gender & Diversity Labour Disputes & Strikes Loss of Key Personne Employee Misconduct	Litigation Private Lawsuit Mass Tort Class Action
Market Crisis Asset Bubble Bank Run Sovereign Debt Crisis Flash Crash Fraudulent Market Manipulation Cryptocurrency Failure Reserve Currency Shift	Goverment buisness policy Emerging Regulation Corporation Tax Rate Hike Diverted Profits Tax Nationalisation Confiscation of Assets Privatisation License Revocation	Critical Infrastructure Power Transport Telecommunications Satellite Systems Water & Waste Fuel Gas	Space Solar Storm Astronomical Impact Event	Brand Perception Fake News Negative Media Coverage Key Influencer Disruption Negative Customer Experience	Strategic Performace Divestitures Joint Ventures Mergers & Acquisitions Restructuring Poor Investment
Trading Enviroment Tariff Dispute Cartel Manipulates Market Organised Crime	Change in Goverment Nationalism / Protectionism Left-Wing Radicalism Right-Wing Radicalism Populism Environmentalism	Industrial Accident Fire Explosion Pollution Structural Failure Nuclear	Climate Change Physical Liability Transition Increase in Extreme Weather Sea Level Rise Ocean Acidification Lower Carbon Economy	Sustainable Living Consumer Activism Sustainable Purchasing Supply Chain Provenance Diet	Management Performance Executive Mismanagement Ineffective Board Management Execution Failure
Company Outlook Hostile Takeover Credit Rating Downgrade Investor Negative Outlook	Political Violence Social Unrest Terrorism Subnational Conflict & Civil War Coup d’État		Enviromental Degradation Waste & Pollution Biodiversity Loss Ecosystem Collapse Deforestation Soil Degradation	Health Trends Obesity Longevity Antimicrobial Resistance Medical Breakthroughs Healthcare Social Care	Buisness Model Deficincies Technology Customer Preference Change
Competition Disruptive Competitor Aggressive Competitor Fraudulent Competitor Intellectual Property Theft	Interstate Conflict Conventional Military War Asymmetric War Nuclear War Cold War		Natural Resource Deficiency Fossil Fuels Biogeochemicals Raw Materials Water	Infectious Disease Influenza Pandemics Coronavirus-like Epidemics Viral Hemorrhagic Fevers Preventable Disease Outbreaks Unknown Emergent Diseases	Pension management Contribution Management Fund Management
Counterparty Supplier Failure Customer Failure Government Failure Creditor Failure Counterparty Fraud			Food security Animal Epidemic Plant Epidemic Famine		Products & Services Product Defect/Failure Innovation (R&D) Failure

Source: IRM Cambridge Report

The Companies Act 2013 of India made it mandatory for every firm to have a robust risk management process and placed specific expectations on important stakeholders in a company, namely, the Board of Directors, Audit Committee and the Independent Directors in relation to risk management.

Clause 49 of the Listing Agreement of Securities and Exchange Board of India (SEBI) states that:

Companies shall lay down the procedure to inform Board Members about Risk Assessment and minimisation procedures. These procedures shall be periodically reviewed to ensure that the executive management controls risk through means of a properly defined framework.

SEBI's update released in 2014, prescribed constituting a Risk Management Committee, in each of the top 100 companies by market capitalisation.

Reserve Bank of India (RBI) has also mandated specified financial institutions to have a Chief Risk Officer, who is required to function independently to ensure the highest standards of risk management.

IRM’s qualifications (Level 1 to 5) have been recognised as the gold standard in enterprise risk management education. Enrolling for IRM's qualifications with Enterprise Risk Management will hone your career, knowledge and enhance your network as you join a global community of risk professionals and business leaders. IRM also delivers customised industry training programs and research to improve technical and professional competence for the ERM profession. We also help leaders boost the credibility of their businesses by supporting their ambitious plans to place risk management at the centre of decision making.

IRM's curriculum builds the foundation necessary for success in any field with a focus on Enterprise Risk Management. Developed by an international team of academicians and risk practitioners, the intensive curriculum provides advanced knowledge in international standards, global risk framework and guidelines, access to case studies, applied exercises and current affairs. By joining forces with industry experts, we ensure that the curriculum for all Levels is constantly reviewed and updated to it relevant in every global scenario.

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