This article originally appeared on the CIA COVID-19 Hub.
There is no better case for the widespread implementation of ERM frameworks in business than the virulence of COVID-19.
Generally applied as an approach to mitigate risks before they happen, enterprise risk management might still find relevance as a useful function in minimizing disruption even as it occurs.
The following resources are examples of the utility of ERM practices amid crisis:
- Risks and capital models: A report from the Extreme Events Working Party – Discussion of extreme events, like those we are experiencing today.
- National Risk Management – A Practical ERM Approach for Federal Governments – A CIA publication exploring a value-based approach to ERM and how federal governments can use it to support risk-reward decision making at the highest levels.
- Recognizing When Black Swans Aren’t – Recognizing, assessing, and responding to large-scale, large-impact rare events (LSLIREs), or occurrences often wrongly labeled as unpredictable “black swans.”
- Operational Risk – What Is it and What Do I Do About It? – An essay on measuring and managing the increasingly important operational and business risks that many currently face.
For additional resources, research, and materials, visit the CIA ERM webpage.