BACKGROUND

Organizations face a myriad of risks emanating from cybersecurity threats, globalization and the geopolitical environment in which they operate. Other risk forces include technological innovations and disruptions, the ever-changing and increasing demands for customized products and services and the need to comply with various local and international regulations.

Well-managed organizations have always had some focus on risk management using traditional risk managing approaches. However, these ad hoc, fragmented and ineffective risk management process led to the underestimation of the biggest risks and over estimation of others resulting in uncontrolled risks and unnecessary costs. This has a negative impact on the shareholder value. Enterprise Risk Management (ERM) takes an integrated and holistic perspective of how the various organizational units interact and relate, and, how risks cut across the departments by systematically identifying all significant risks, quantifying and ranking all the identified risks and appropriately controlling all risks for the benefit of the stakeholders. As part of ongoing efforts to strengthen risk management within organisations, MEFMI has embarked on a programme that will assist organisations to strengthen organisational risk management.