# What is an enterprise risk management (ERM) framework?

<p class="elv-tracking-normal elv-text-default elv-font-figtree elv-text-base elv-leading-base elv-font-normal" elv="true">What is an enterprise risk management (ERM) framework?</p>

##### Post Metadata
- Posted at: 2 months ago
- Author title: Digital Content Manager
- Net upvotes: 3


## Comments
### Comment 1

An Enterprise Risk Management (ERM) framework is a structured, organization-wide approach to identifying, assessing, and managing risk in a consistent and coordinated way.

Rather than addressing risks in silos, an ERM framework establishes a common methodology that allows risks to be evaluated and compared across business units. This typically includes defined processes for risk identification, risk assessment (likelihood and impact), control evaluation, and ongoing monitoring and reporting.

There are several widely recognized ERM frameworks that organizations use as a foundation, including:

• COSO ERM Framework – focuses on integrating risk with strategy and performance

• ISO 31000 – provides principles and guidelines for risk management across industries

• Risk Maturity Model (RMM) – emphasizes assessing and improving the maturity of risk management practices over time, helping organizations move from ad hoc efforts to fully integrated, proactive programs

The importance of an ERM framework goes beyond operational efficiency—it also has governance and legal implications. For example, in Stone v. Ritter (2006), the Delaware Supreme Court reinforced that directors have a duty of oversight, which includes ensuring that appropriate information and reporting systems are in place. A “sustained or systematic failure” to establish such systems can expose leadership to liability.

In practice, an ERM framework helps organizations:

• Provide leadership and the board with a consolidated, reliable view of risk

• Establish consistent reporting and escalation processes

• Support informed decision-making aligned with risk appetite

• Demonstrate that appropriate oversight structures are in place

Ultimately, an effective ERM framework enables organizations to manage uncertainty in a disciplined way while meeting both strategic and fiduciary responsibilities.

##### Comment Metadata
- Posted at: 2 months ago
- Author title: ERM Strategist | Helping Organizations Operationalize Risk Management | LogicManager




## Related Product
[LogicManager](https://www.g2.com/products/logicmanager/reviews)

## Related Category
[Enterprise Risk Management (ERM)](https://www.g2.com/categories/enterprise-risk-management-erm)

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