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Enterprise Risk Management (ERM)

Risk management is present in all organisations but tends to be fragmented into specific functions; for example, finance, legal, credit, health and safety, environmental, security, public relations and human resources.

Risk management is most effective when implemented consistently throughout an organisation and supported by senior stakeholders.

What is Enterprise Risk Management (ERM)?

Sometimes known as Enterprise Wide Risk Management or even Holistic Risk Management, ERM is the development and the embedding of risk management systems and processes throughout an organisation. ERM helps ensure organisations operate within their risk appetite, while achieving strategic objectives.

The Willis Towers Watson ERM offering draws all risk management strands together so that an organisation’s approach is consistent, rigorous and compliant with Codes of Corporate Governance and business best practice

What are the benefits?
ERM can take up to three years to completely embed within an organisation depending on existing levels of risk maturity. Some benefits however, can be achieved quicker than others and include:
  • Compliance with corporate governance requirements
  • Delivery of business plans and strategic objectives
  • Improvement of Board’s awareness of risk across the organisation
  • Clarification of strategies
  • Management of organisational change
  • Demonstrable awareness and control over existing business threats

Contact us:

For further details please contact your local Willis Towers Watson office.

Enterprise Risk Management factsheet:

Case study:

An organisation specialising in sub-sea oil extraction and decommissioning services had grown rapidly through acquisition. Each subsidiary had a different approach to managing risk and the company had suffered losses as a result.

Willis Towers Watson specialists recommended ERM as a way for each subsidiary to identify, quantify and manage its risk exposures consistently across the group.

The resulting benefits of the ERM review included :

  • Senior management having a clear view of the risk exposures
  • Consistent approach to risk analysis throughout the organisation
  • A more robust approach to meeting corporate governance requirements, providing assurances ahead of an IPO
  • Reassurance for investors that the company had a good control over its exposures

As a result of the ERM review and subsequent improved loss ratio, Willis Towers Watson was asked to remain part of the ongoing programme to support the subsidiary companies and advise on risk management strategy.