Enterprise wide risk management

Enterprise Risk Management (ERM) strengthens decision-making by increasing the risk detection capabilities of managers and orchestrating coordinated responses to risk scenarios. This approach compels managers to discard silo and checklist mentalities for structured approaches with actionable outcomes (AAI, 2010; Burnaby & Hass, 2009; KPMG, 2001; PWC, 2015). Thus, ERM is also a significant source of competitive advantage (Barton et al., 2002). Robust approaches to ERM are essential in rapidly developing nations. Despite the upsides of doing business in burgeoning economies, which include competitive wages, investment incentives and political patronage, "hidden risks" still abound.