• About us
  • Raising the Bar
  • Raising your Game
  • The Extra G - Geopolitical
  • Risk Matters - Roundtables
  • Leadership Team
  • Events
  • Blog
  • Contact
  • Menu

The Risk Coalition

  • About us
  • Raising the Bar
  • Raising your Game
  • The Extra G - Geopolitical
  • Risk Matters - Roundtables
  • Leadership Team
  • Events
  • Blog
  • Contact

Enterprising your risk management

January 05, 2022

What makes enterprise risk management (ERM) different from project- or team-based approaches to risk management?

Well, while many of the principles are the same, there are some core differences that you should consider as you introduce risk management on an enterprise-wide basis.

Here, we’ll look at the ways that ERM builds on and differs from the kind of risk management approach you might be used to from managing risks.

ERM covers the whole organisation

The most obvious difference is that risk management approaches in a project environment look at risk as it relates to the project. Perhaps that might extend in PMO environment to risks that affect the program or portfolio.

Enterprise Risk Management (ERM), on the other hand, looks at all risks facing the business (both internal and external). There are lots of potential areas of the organisation that face risk that might not be actively engaged in a project. For example, there could be PR-related risk, or potential challenges to do with business continuity. Unless those areas are involved in a current project, the risks may go undetected.

ERM makes sure that the risks facing any area of the organisation are understood and actively managed.

ERM manages interrelated risk

Most project management approaches consider risk management as something to do to each individual risk. The largest projects may integrate risks to see what the impact may be of several risks happening at the same time, and to better understand the relationship between them. But in my experience, most project managers stop at evaluating the individual risk and come up with a management plan to address it.

Risk management isn’t a standalone process. While you can manage risks individually – and successfully – you can broaden and mature your response to risk if you look at what the combined impact of risks could be.

ERM does this by prioritising and evaluating risks as part of an interdependent portfolio. No risk is considered an individual silo. Instead, each risk sits within its own context, and also within the context of the risk portfolio and wider business.

Often, the combined impact of several risks is different from the sum of those individual risks. That could be a greater or lesser exposure, depending on how the risks intertwine with and influence each other.

This rounded, holistic view of enterprise risk helps you compare and contrast different responses, as well as often making it easier to address complexities.

ERM evaluates risks in context

Project risk management looks at risks in relation to the project. How will this risk stop us from meeting our objectives? How will it affect deliverables? The project context is everything.

ERM takes a different approach. It looks at each enterprise risk in relation to the rest of the business. It takes the whole organization into account, looking at the impact on systems, stakeholders, processes, socio-political structures within the organisation and external conditions such as market response.

ERM is part of business decision making

Managing uncertainty at a project level affects the decisions regarding that individual project – maybe the program or portfolio if the risks are substantive.

ERM provides data to input into decision-making across the business at the most strategic level. The combined risk portfolio sets the limits on the risks the organisation is prepared to take. Project and operational decisions can be made with an understanding of how the risk portfolio will change as a result. Perhaps that means some projects are postponed until other risky initiatives are completed. Perhaps executives choose to take on work with an uncertain outcome precisely because the overall risk portfolio shows that now is a good time.

Embedding ERM in the process for defining strategy leads to greater clarity, fewer missteps and a better understanding of where the business is at.

ERM provides the basis for shared understanding

Finally, adopting an enterprise approach using ISO31000 standard as reference gives the organisation a shared risk vocabulary and common processes. Everyone across the business will be measuring, evaluating and talking about risk in the same way, which makes it easy to compare the relative impact of risk across different teams promoting conformity to same set of risk management standards. 

The processes that go alongside implementing ERM make it easy for you to audit the work involved. This is valuable to provide internal reassurance that risk is being adequately managed at all levels.

The bottom line is that Enterprise Risk Management (ERM) gives you a competitive advantage. It’s a mature way to manage internal and external influences on your projects and business, and it’s possible to implement from the ground up or as a top-down approach depending on where you are in your risk management maturity journey.

Have you thought about how to tie together all the risk management processes in your organisation? Standardising and ‘enterprising’ them will pay dividends in terms of relevant management information and assurance for your company.

Lebogang Mothopi is based in Johannesburg. He works, with governments, businesses and organisations to improve their risk management practices and programmes using ISO31000 Standard as reference. 

Tags: Lebogang Mothopi
Prev / Next

Blog

Featured
Boards do not have a risk problem.  They have a decision problem.
July 22, 2026
Boards do not have a risk problem.  They have a decision problem.
July 22, 2026

Boards now receive more risk information than ever.  Dashboards are richer, risk packs are more sophisticated and oversight frameworks are more mature.  Yet the key question is whether this has really improved the quality of board decision making.  In some organisations, more risk information has sharpened oversight.  In others, it has created more caution and more process comfort without making the decision itself any clearer.  The Risk Coalition’s recent Risk Matters roundtable considered the issues around information and decision making.

Read more →
July 22, 2026
AI governance: why boards need to look beneath the surface
June 14, 2026
Pauline Norstrom
AI governance: why boards need to look beneath the surface
June 14, 2026
Pauline Norstrom

When it comes to AI, in the boardroom there is recognition that something material is changing.  But there isn’t always a shared view of where it sits, who owns it or how it should shape decisions.  This gap matters and, with AI, the optics of governance can arrive well before the substance.

Developing frameworks and committees bring structure, provide a common language and signal that an issue is being taken seriously – but AI does not behave like traditional technology.  AI-enabled features appear inside mainstream tools and its capability can span processes, functions and suppliers in ways that are not immediately visible.  In a recent Risk Coalition roundtable, Pauline Norstrom, characterised this as an iceberg problem, and discussed the risks and challenges that all boards need to be aware of.

Read more →
June 14, 2026
Pauline Norstrom
Uncovering a hidden risk - focusing on intelligibility
May 8, 2026
Ewan Willars
Uncovering a hidden risk - focusing on intelligibility
May 8, 2026
Ewan Willars

Across sectors, there is an increasing focus by regulators on consumer understanding, as well as preventing harm and confusion by ensuring that key disclosures are made more intelligible.  At present, the form and format of disclosures prescribed by law and regulation continue to be the dominant influence on how firms communicate, from pre-sales information, terms and conditions, contractual agreements, to post-sales communications.  These rigid disclosure rules often work at odds with the ability of consumers to understand the communications, and we are now seeing regulators focus increasingly on removing prescription to ensure a focus on better outcomes.  Ewan Willars from Amplified Global discusses the changes that are taking place.  

Read more →
May 8, 2026
Ewan Willars
Go to jail.jpg
December 15, 2025
Risk Matters: ECCTA – in the Boardroom
December 15, 2025
Read more →
December 15, 2025
Strengthening risk oversight
October 27, 2025
Hanif Barma
Strengthening risk oversight
October 27, 2025
Hanif Barma

Risk governance is an essential element of decision making by organisations, even more so today in a complex, unpredictable and fast-changing business environment. Risk arrangements at board level can miss the point if they focus only on mitigating downside risk - they are in danger of losing sight of new opportunities that are necessarily grasped to ensure long-term sustainability. Hanif Barma summarises a recent roundtable discussion jointly hosted by Diligent and the Risk Coalition. A major conclusion of the discussion, which involved board members and senior risk professionals, was that a change in mindsets and behaviours was needed to drive effective risk governance.

Read more →
October 27, 2025
Hanif Barma
September 16, 2025
True, Fair... and Future-Proof: Risk Accounting for a New Era
September 16, 2025
Read more →
September 16, 2025
Risk Matters Blog – The Anatomy of a Ransomware Attack
September 16, 2025
Risk Matters Blog – The Anatomy of a Ransomware Attack
September 16, 2025
Read more →
September 16, 2025
The future of ESG: navigating a fragmented landscape
April 15, 2025
Vera Cherepanova
The future of ESG: navigating a fragmented landscape
April 15, 2025
Vera Cherepanova

The business world has long wrestled with the question of purpose beyond profit. But in the era of ESG (Environmental, Social and Governance), this debate has become more than philosophical – it’s a battleground where culture wars, regulatory demands and investor expectations collide. In this Risk Coalition blog, Vera Cherepanova looks ahead and considers the evolution and challenges of the ESG landscape, and discusses how this might evolve in future.

Read more →
April 15, 2025
Vera Cherepanova
Internal audit and risk management must work together to navigate uncertainty
March 6, 2025
Mo Warsame, Gavin Hayes
Internal audit and risk management must work together to navigate uncertainty
March 6, 2025
Mo Warsame, Gavin Hayes

Heightened economic volatility, technological disruption and geopolitical tensions impact all organisations today - whatever their sector. This means that internal audit and risk professionals are under more pressure than ever to help their organisations remain resilient. The Chartered Institute of Internal Auditors (Chartered IIA)’s new Internal Audit Code of Practice - now in force - designed to strengthen internal audit functions and support organisations in tackling these emerging risks head-on, raising the bar for the profession across financial services, private, and third sectors. Mo Warsame from the Chartered IIA explains why internal audit and risk management need to work together to navigate these ever-increasingly challenging risks.

Read more →
March 6, 2025
Mo Warsame, Gavin Hayes
Three key threats of phishing to be aware of
September 4, 2024
Polly Williams, Mia Harris
Three key threats of phishing to be aware of
September 4, 2024
Polly Williams, Mia Harris

Phishing is a significant IT risk and this risk is largely a behavioural one. It is estimated that 90% of cyber attacks originate with a phishing attack so, with cyber regularly identified by boards as one of the biggest risks their businesses faces, it is useful to be reminded what the warning signs are, and how to best prepare and respond. Polly Williams tells us how to avoid the common pitfalls.

Read more →
September 4, 2024
Polly Williams, Mia Harris
Principles versus rules in data and corporate governance
August 25, 2024
Felix Ritchie
Principles versus rules in data and corporate governance
August 25, 2024
Felix Ritchie

In the world of corporate governance, the question of whether a principles-based approach or a rules-based approach is the most effective is often a matter of debate. Different jurisdictions and different regulators take alternative approaches and, indeed, different approaches may be followed at different times. Felix Ritchie considers these two alternative approaches in his blog for the Risk Coalition. He looks at the cross-sector consultation document, Raising Your Game from the Risk Coalition and he draws on this to provides him with some lessons for data governance.

Read more →
August 25, 2024
Felix Ritchie
How can you maintain high standards in your business without suffering burnout?
July 16, 2024
Jane Hunter, Mia Harris
How can you maintain high standards in your business without suffering burnout?
July 16, 2024
Jane Hunter, Mia Harris

People risk is nowadays recognised as a very wide-ranging concept, in its many dimensions. Gone are the days when this focused solely on headcount (we haven’t got enough people! or, we can’t afford the people we have!) and their capability (we haven’t got the right skill sets!). Wellbeing is now recognised as a key part of people risk, and an important aspect of this is burnout. Burnout is a state of complete mental and physical exhaustion, where we become so overwhelmed that our performance at work can suffer, while physical and mental health issues can also affect us outside of the work environment. If not addressed and adequately managed, it can easily become a feature of high perfoming businesses. Jane Hunter discusses how to maintain high standards and high levels of performance without suffering burnout.

Read more →
July 16, 2024
Jane Hunter, Mia Harris
Enforcement of individual accountability in UK banking: a new boardroom recipe for change or continuity?
June 2, 2024
Afshan Moeed
Enforcement of individual accountability in UK banking: a new boardroom recipe for change or continuity?
June 2, 2024
Afshan Moeed

Increasing personal accountability was the focus of the Senior Managers and  Certification Regime (SMCR), introduced by the financial regulators following the 2008 financial crisis.  However, has individual accountability really resulted since the introduction of SMCR, have behaviours changed and has governance and risk culture improved?  These are questions that Afshan Moeed considered in her now-completed PhD project, and she discusses this in her blog.

Read more →
June 2, 2024
Afshan Moeed
Three exciting new developments for AI in 2024 that you need to know about
May 28, 2024
Craig Morris, Mia Harris
Three exciting new developments for AI in 2024 that you need to know about
May 28, 2024
Craig Morris, Mia Harris

Robotics and artificial intelligence have been in the public consciousness for decades, but only in recent years have we really started to comprehend the technology’s sheer potential. Businesses of any size now have the chance to leverage AI to keep up with the competition, to make better informed decisions, and to improve operational efficiency. Craig Morris discusses the key developments to watch out for in three critical sectors: healthcare, environmental sustainability and cyber security.

Read more →
May 28, 2024
Craig Morris, Mia Harris
The stuff of nightmares: risk management is shut down, and nobody notices
May 24, 2024
Stefan Hunziker
The stuff of nightmares: risk management is shut down, and nobody notices
May 24, 2024
Stefan Hunziker

Do a firm’s risk management activities actually create value? Companies increasingly spend time and money implementing a range of risk norms and frameworks whose focus is often on risk identification, analysis, and risk reporting; these are risk process activities that do not create value for decision-makers argues Stefan Hunziker. He say that, typically, nothing has been managed and no decision has been made better by these processes. In this blog, he gets to the heart of risk management - explaining that its single purpose is increasing decision quality.

Read more →
May 24, 2024
Stefan Hunziker