Driving Value Through ERM

The rate of change and impact of risk has never been greater and business leaders are placing increasing focus on Enterprise Risk Management (ERM) as a key business tool, since damages and opportunities lurk in non-traditional areas of risk. KPMG combines leading thinking on ERM strategies and extensive knowledge of business to support our clients in developing and embedding robust, value adding, and practical risk management activities.

KPMG's Key Insights

Most of the risks that end up hurting a business are not financial in nature, yet business investment in risk management is still predominantly focused on financial reporting.

Protecting business reputation is key to long term success yet many businesses have an unclear picture of how well they are managing “reputation” risks.
Credit rating agencies are incorporating ERM assessment of businesses into their own methodologies and creating additional incentives for investment in ERM processes.
It is becoming clear that effective ERM requires more than a good risk assessment process; co-ordination between strategy, planning and internal control is essential.
Corporate governance and regulation around the world continues to apply pressure on businesses to develop better risk management processes but without providing any answers.

KPMG’s Approach

Our approach is to support our clients with the development and embedding of ERM practices. We seek to do this in a number of ways:

Risk and control profiling

We identify and record risks, their root causes and consequences within the different departments or operations of a company, and determine / estimate the inherent impact / severity and inherent probability that the risk may materialize in the timeframe decided upon. We identify the key controls currently in place to mitigate the risks identified, and assess the effectiveness of these controls. Consequently, we strengthen the enterprise-wide insight into the key risks to your business, the quality of your risk mitigation strategies and the sources of assurance.
ERM Implementation

We support for the implementation of the many aspects of an ERM program, from risk assessment and training to new reporting processes and improvements to your control environment.
Guidance to the Head of ERM

We provide guidance to the Head of a company’s ERM department in order to embed ERM into the company in a structured manner. For this service, we use a tool, developed by KPMG, containing a set of instructions and guidelines to execute the implementation tasks, providing a template, checklist or sample deliverable for each of the required tasks.