About Enterprise Risk Management (ERM)

ERM Vision

Enable all decision makers, including the Board of Trustees, faculty, management, operational staff, and others to identify, assess, and manage risks in a continuously changing and uncertain environment.

ERM Goal

• ensure the seamless integration of strategic planning
• recognize early warning risk indicators
• link decisions with stakeholder values
• drive sustainable synergies

ERM provides structure to enable the University to meet its continuing demands brought forth by pressures to:

• sustain competitive advantages
• transform business processes
• improve financial transparency
• increase productivity while reducing costs
• implement new technologies
• transform the infrastructure to handle increasing entrepreneurial ventures
• address rapidly changing regulations

The ERM framework allows you to assess, quantify, mitigate, and monitor risks.

• Assessment — identify events or key risks based on the internal environment in which the unit operates and the alignment of its objectives with Purdue’s strategic plan
• Quantification — analyze the risk impact and likelihood of identified events based on risk tolerances (heat maps are typically utilized to depict this analysis)
• Mitigation — development of risk mitigation strategies or control activities
• Monitoring — identification of successful strategies or course correction opportunities based on information, communication, and monitoring

Reference COSO ERM Integrated Framework (http://www.coso.org/) for detailed information on enterprise risk management.