Understanding Enterprise Risk Management Framework | Podcast

Krishnan begins by offering a history and development of ERM, emphasizing its evolution into a vital forward-looking function that is integral to modern business operations. He explains that ERM frameworks are designed to identify, assess, and mitigate various types of risks that organizations face, thereby adding significant value to the bottom line. He illustrates how ERM's proactive approach can anticipate potential threats and address them before they escalate into major issues. Highlighting its importance, Chari notes that effective ERM not only safeguards an organization but also enhances its financial health and stability.

The discussion also covers the consequences of poor enterprise risk management. Krishnan provides examples, such as the 2008 financial crisis, which stemmed from a failure to properly assess credit risk and exceeding the risk appetite. He stresses that neglecting ERM can lead to catastrophic outcomes, including financial losses, reputational damage, and operational disruptions.

In closing, Krishnan also shares suggestions for building an effective ERM framework and underscores the critical role of ERM in ensuring sustainable business growth and resilience. 

We hope you found the discussion on importance of a understanding enterprise risk management framework educational. Stay tuned for the next episode of Paytech Bytes. You can reach us at ⁠⁠⁠⁠marketing.worldlineindia@worldline.com.