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What is ERM?
Risk is part of all our lives. As a society, we need to take risks to grow and develop. From energy to infrastructure, supply chains to airport security, hospitals to housing, effectively managed risks help societies achieve their objectives and vision. In a fast-paced world, the risks we have to manage are evolving quickly with many inter-connected events consolidating and creating catastrophic impact on individuals, organisations and economies. We need to make sure we manage risks so that we minimise their threats and maximise their potential.

While traditional risk management focused on the analysis of limited areas of risks, Enterprise Risk Management (ERM) is an integrated and joined-up approach to managing risk across an organization and its extended networks. As per COSO, ERM is a process, affected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. The IRM defines risk management as a process which aims to help organisations understand, evaluate and take action on all their risks with a view to increasing the probability of success and reducing the likelihood of failure

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
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
Government Business 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 Performance
  • Divestitures
  • Joint Ventures
  • Mergers & Acquisitions
  • Restructuring
  • Poor Investment
Trading Environment
  • Tariff Dispute
  • Cartel Manipulates Market
  • Organised Crime
Change in Government
  • 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
Environmental Degradation
  • Waste & Pollution
  • Biodiversity Loss
  • Ecosystem Collapse
  • Deforestation
  • Soil Degradation
Health Trends
  • Obesity
  • Longevity
  • Antimicrobial Resistance
  • Medical Breakthroughs
  • Healthcare
  • Social Care
Business Model Deficiencies
  • 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
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.
As an IRM qualified risk-intelligent professional, you can work across sectors in any function.
IRM Qualified professionals have been working across the globe for:
  • Big 4 consulting firms
  • Risk based assurance in consulting and auditing firms
  • Strategic risk management at consulting firms
  • Credit rating agencies in risk management teams
  • Small and medium enterprises
  • Rating agencies as company risk analysts
  • Banks/NBFCs/FI as credit or risk professionals
  • Equity markets as risk research experts
  • Risk consulting and advisory services
  • Industry risk management teams in any sector
  • Due diligence in investment banking