The demand for enterprise risk management will increase

Enterprise risk management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects of risk on an organization's capital and earnings. An effective, integrated ERM program can help an organization identify and take action on risks that may be affecting the achievement of its core strategic objectives. ERM should align with a company's goals and objectives. ERM is becoming more than just a way of managing risk but also a way of doing business.

Risk management is going to become an extremely critical topic for both the public and private sector next year. As a nation, we are facing complex geopolitical issues and state-sponsored attacks targeting our businesses and government on an enormous scale. Large financial institutions and Silicon Valley companies have already experienced billions of dollars in losses due to decisions being made without effective enterprise risk management.

 Data is both an asset and a liability and next year we are going to see the regulatory environment become even more complex around data governance, which will see enterprise risk management become a huge priority for the C-suite and board. For the purposes of its work, the Committee developed the following definition: ERM is the process by which organizations in all industries assess, control, exploit, finance, and monitor risks from all sources for the purpose of increasing the organization's short and long term value to its stakeholders.