PART ONE tells the story of why organizations should create Enterprise Risk Management (ERM) programs using a new paradigm. Risks are related. One risk affects others as risks cross the often-artificial walls of day-to-day operations. People can be too close to risk or just too busy to recognize impending critical problems.
We start with how modern risk management has morphed from a narrow insurance-buying role. Stories and examples help us grasp hazard risk management as a foundation to understand ERM. What is ERM? What does it mean for an organization? What are the contributions it makes to our understanding of risk (Chapter 3)? It is an entirely new paradigm, and our presentation is different from other ERM discussions. We go to the practical heart of the value of ERM.