JaBA Enterprise Risk Management (ERM)

Risk Management is mandatory for all public-listed companies because of the Code of Corporate Governance issued by regulators (Stock Exchanges). This governance rule follows after the spate of corporate scandals committed by world-renown corporations at the close of the last millennium. Boards and CEOs are obligated by this Code to ensure that shareholders' interests are protected against any loss or diminution in their investments that may result from risk impacts.

Risk Management is a strategy for excellence adopted by enlightened organizations who understand that the organization that wins is the one who have dealt head-on with their risk exposures. An industry risk that they have dealt with but not their competitor tantamount to gaining a competitive advantage over them (competitors). The losers are those who are impatient and who put their heads in the sand as the proverbial ostrich would.

There are risk management of sorts. However, the risk management program that offers the critical protection is one that effectively embodies the risks of the whole enterprise. This is Enterprise Risk Management or "ERM". Without a holistic approach to treating risk on the enterprise-wide level, the organization remains vulnerable as before.

Since mid-1990s, the need for risk management had been advocated as a powerful business strategy. However, the take-up rate of ERM since then has not been up to expectations. According to surveys conducted by leading risk management institutions, there are apparent obstacles to implement effective ERM programs. This is the 'RISK' in implementing ERM that actually deters organizations from doing so.

There are tomes of articles written about risk management and also various risk management standards available. Yet, implementation efforts have been somewhat futile in bringing out the full benefits to the implementers. There are success stories by risk management proponents in the US, Europe and Australia, and only a few in Asia. JaBA has the right methodology to do it successfully!