Integrating ERM with business planning

Enterprise risk management works best when it is integrated with your business processes. Strategic and business planning is a fundamental activity of all organisations, so it is a good place to start. This chapter outlines the stages in the planning process and how the planning and risk management teams should contribute to each one. It discusses inputs to the draft plan: joint environmental scanning to develop agreed assumptions about the business context in which you are creating your plans and conducting your enterprise risk management activities, learning lessons from your organisation’s recent performance, and major risks you know about already. It then talks about stress-testing the draft plan to identify significant risks that could affect whether you achieve your targets and incorporating actions from the risk assessment and the stress testing in the revised plan to address uncertainty over the planning period.