Workers Comp Term Of The Day - Strategic Risk Management

Strategic Risk Management (SRM) is the identification, assessment, and managment of risk in an organization's business strategy. When risks are realized under this process, action is taken swiftly. SRM involves predicting how possible events will affect the strategy and it's execution, and what effect these events will have on the value of a company.

For SRM to be effective, an organization must define what levels of risk are tolerable as a guide for decision making. SRM is a continual process and should be embedded in setting and executing strategy. SRM is a primary component of Enterprise Risk Management (ERM)