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Enterprise Risk Management

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Uncertainty plays a major role in business decision making, and never more so than in these fast-changing times. Business leaders seek better knowledge and insight on which to base their decisions. As recent events have shown, a comprehensive view of risk is all important. Which is why organizations are now transiting from conventional risk management to an Enterprise Risk Management (ERM) approach.
As an enterprise risk management consultant, MBG uses in-depth understanding of strategic, business and operational risks to establish, review and enhance the ERM frameworks of businesses, aligning them with the latest standards such as COSO. Our consultative approach comprises interviews, surveys and risk workshops.

What is the regulatory environment surrounding Enterprise Risk Management?
  • ADAA resolution no. 1 – There solution mandated organizations to test effectiveness of internal controls and compliance with laws.
  • IFRS 17 (Insurance Contract) – IFRS17 will bring new and challenging obligations to the UAE insurance market in terms of further open and transparent financial reporting set against the existing legal obligations under Section (6) and (7) of the Regulations issued on 2014.
  • Board of Directors’ Decision Number (25) of 2014 Pertinent to Financial Regulations for Insurance CompaniesThe Regulations provide a solid prudential platform for risk management and risk mitigation where UAE insurance companies established new internal governance structures.
  • Insurance Authority’s board of Directors’ Decision No. (19) of 2020 – The Circular mandates that it is the insurance companies ‘obligation to create the job of risk management in a manner that it be structurally regulated to enable the application of the risk management system in the company.
  • Risk Management and Internal Controls Regulation and Standards for Insurance Companies – Article (3): Effective Risk Management System – A Company’s Risk Management system must be designed to operate at all levels to allow for the identification, assessment, monitoring, measuring, controlling, reporting and mitigating of all risks of the Company in a timely manner.
  • The Standards for Exchange Business in the UAE (Version 1.10) – February 2018 – 10.1 Risk Management Framework – The ultimate responsibility for the formulation and implementation of an effective risk management framework lies with the Board of Directors (or with the Owner/Partners where there is no Board of Directors).
How can ERM services help your business?
  • Improved decision-making: ERM enables better-informed decision-making by providing a comprehensive view of the organization’s risk landscape.
  • Enhanced risk awareness: ERM fosters a culture of risk awareness throughout the organization.
  • Mitigation of financial losses: ERM helps identify and prioritize risks that could lead to financial losses.
  • Regulatory compliance: ERM service assists in ensuring compliance with regulatory requirements
  • Resource allocation: ERM helps allocate resources more effectively by focusing on the most significant risks.
  • Early warning signs: ERM allows for the identification of early warning signs of emerging risks, enabling the company
How can we help you?
  • Framework development and review of ERM
  • Development and review of risk appetite statements
  • Risk assessment workshops and trainings
  • Development and review of key risk indicators (KRIs)/(KRAs)
  • Risk reporting templates based on the COSO and the leading risk management standards

Enterprise risk management

Enterprise Risk Management (ERM) is a strategic framework adopted by organizations to identify, assess, prioritize, and mitigate risks that may affect their ability to achieve objectives. It encompasses a holistic approach to risk management, integrating risk considerations into decision-making processes at all levels of the organization. ERM enables organizations to proactively manage risks, seize opportunities, and enhance overall resilience and sustainability.

Benefits of ERM

  • Improved Decision Making
  • Enhanced Resilience
  • Optimized Resource Allocation
  • Stakeholder Confidence
  • Competitive Advantage

Key Components of Enterprise Risk Management

Risk Identification: ERM begins with identifying and categorizing potential risks that may impact the achievement of organizational objectives.

Risk Assessment: Once risks are identified, organizations assess their likelihood and potential impact on objectives.

Risk Prioritization: ERM prioritizes risks based on their significance, allowing organizations to focus resources on addressing the most critical risks first.

Risk Mitigation Strategies: After prioritizing risks, organizations develop and implement strategies to mitigate, transfer, or avoid them.

Monitoring and Reporting: ERM involves ongoing monitoring and reporting of risks to ensure that risk management efforts remain effective and aligned with organizational objectives.

Integration with Decision Making: ERM integrates risk considerations into decision-making processes across all levels of the organization.

Culture and Governance: ERM promotes a risk-aware culture within the organization, where risk management is viewed as everyone’s responsibility.

Why choose MBG

  1. Goal Setting: Incorporate risk management objectives: Integrate risk management objectives into the goal-setting process to ensure that risk considerations are embedded in organizational priorities.
  2. Risk Identification: Align risk identification with strategic goals: Identify risks that may impact the achievement of strategic objectives identified during the goal-setting process.
  3. Risk Assessment: Prioritize risks: Assess the likelihood and impact of identified risks to prioritize them based on their significance to organizational goals.
  4. Risk Mitigation: Develop action plans: Develop specific action plans and initiatives to mitigate prioritized risks and enhance the likelihood of achieving strategic goals.
  5. Integration with Decision Making: Embed risk considerations: Integrate risk considerations into decision-making processes at all levels of the organization, ensuring that risks are addressed in strategic planning, project execution, and daily operations.

Explore more Risk Advisory services:

Account Reconciliation

Corporate Governance Services

Revenue Assurance Services

Business Health Check

Accounting Advisory Services- IFRS Implementation

Accounting Review Services

Forensic Investigation and Review

Business Continuity Planning (BCP)

Anti Money Laundering

Physical Verification Services

Internal Control Over Financial Reporting (ICFR)

Standard Operating Procedure

Internal Audit

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Call us at: +971 52 640 6240

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