Enterprise Risk Management (ERM) and Business Continuity Management (BCM) are resiliency-related capabilities and disciplines. While ERM and BCM both have risk management as common goals, they are generally seen as separate operations and conducted in silos.
So, if that is the case, why is there a need to integrate them?
Both share the common goal of enhancing an organization's value creation and protection. ERM allows an organization to create and protect its values by assessing, monitoring, reporting, and responding to risks that may negatively affect its objectives.
Meanwhile, BCM strengthens the strategic and tactical capabilities of the organization by identifying and developing a response, recovery, and restoration plan in the event of an incident that could disrupt operations. It ensures that the firm can continue to function at a satisfactory level.
The value of each risk discipline is increased by combining them. But, perhaps, more importantly, the integration enables firms to execute and realize their strategic goals effectively.
What are the specific benefits of the union of ERM and BCM? Here are a few:
The incorporation of enterprise risk management (ERM) and business continuity management (BCM) in companies’ strategic planning efforts enhances their value creation and protection objectives.
The alignment among ERM and BCM reporting committee members results in better preparedness to respond to risks/threats.
The integrated policy taxonomy of ERM and BCM allows enterprises to create a clear and comprehensive risk management approach in which risk, risk management, and business continuity are standardized and uniform across all levels and functions of the organization.
ERM and BCM talent development initiatives that are integrated develop well-rounded competencies. This ready-to-use culture helps manage risks, resolve crises, and deliver long-term solutions.
Organizations can concentrate their risk management attention and resources for better treatment and risk monitoring in crucial areas and processes using Business Impact Analysis, a core part of BCM.
An important thing to highlight is ERM and BCM Technology Integration. Both ERM and BCM in the organization are accelerated by using Risk Management and Risk Sensing Technology. A comprehensive Risk Technology Landscape enables greater communication and cooperation in managing significant risks. Risk sensing capabilities improve the organization's preparation by keeping management informed about developing risks/disruptions.
Need help in creating and managing Risk Technology Landscape? BCM next has real-time simulations to monitor ERM and BCM critical areas and/or processes.
The integration between your company's ERM and BCM is sure to be seamless with the digital ease of BCM next.
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