The key goals of ERM are to:
- Identify Risks: ERM helps organizations systematically identify potential risks, both internal and external, that could impact the achievement of objectives.
- Assess Risks: ERM provides a framework to analyze the likelihood and potential impact of identified risks, enabling the organization to prioritize them.
- Manage Risks: ERM allows organizations to develop and implement appropriate risk response strategies, such as avoiding, mitigating, transferring, or accepting risks.
- Align with Objectives: ERM aligns an organization’s risk management activities with its overall strategy, ensuring that risks are managed in a way that supports the achievement of the organization’s goals.
- Improve Decision Making: By providing a structured approach to risk management, ERM helps organizations make more informed and risk-aware decisions.
- Enhance Resilience: ERM helps organizations become more resilient by enabling them to anticipate, prepare for, and respond effectively to a wide range of risks.
Overall, the purpose of Vanderbilt’s ERM program is to enable the university to proactively manage risks in a comprehensive and integrated manner, ultimately enhancing the university’s ability to achieve the strategic objectives set forth by university leadership.