what types of risk does enterprise risk management address 
erm can help devise plans for almost any type of business risk business risk threatens a company s ability to survive and these risks may be further classified into different risks discussed below in general erm most commonly addresses the following types of risk ideal entities for erm systemserm is particularly well suited for large corporations operating in complex and diverse environments these companies often face a bunch of risks across different business units regions and functions erm helps large corporations systematically identify assess and manage risks at both the operational and strategic levels erm can also be specifically useful in certain industries for example erm is great for financial institutions such as banks insurance companies and investment firms these companies operate within highly regulated and volatile markets these institutions face so many of the risks discussed above by integrating erm into their operations financial institutions can strengthen risk management practices optimize capital allocation and enhance their resilience to economic downturns last it s worth calling out multinational corporations and global enterprises as ideal entities these companies benefit from erm because of their expansive operations across multiple countries and jurisdictions these companies encounter diverse risks related to geopolitical instability currency fluctuations supply chain disruptions and regulatory compliance in varying regions by implementing erm frameworks global enterprises can better track and maintain these risks especially if their entity has higher risks in certain areas departments or business units erm vs erperm is primarily concerned with identifying assessing managing and mitigating risks across an organization on the other hand enterprise resource planning erp tools focus on integrating and optimizing core business processes the primary purpose of erp systems is to streamline operations across finance manufacturing sales and marketing amongst others erm addresses risks across various functions and departments within an organization erp systems are generally more specific in their scope they tend to focus on more granular operational efficiencies instead of bigger picture comprehensive risks implementing erm tools requires collaboration among key stakeholders like risk managers compliance officers executives and board members these stakeholders work together to establish risk management frameworks erp implementations may be more geared towards collaboration among it teams department heads and end users in addition to having a heavy part to play in operations a primary component of erp systems is the potentially live interconnected play between data for this reason as opposed to an erm tool erp systems may have a more technical demand to them last risk management strategies in erm are designed to support long term sustainability protect organizational assets and minimize potential disruptions erp systems align with an organization s strategic goals by improving productivity reducing costs and providing real time insights into business operation opportunities in a sense erm and erp systems may counteract each other for instance an erp system may signal growth and efficiency opportunities to expand in a specific new market an erm may signal that a new market is too great of a risk to consider erm vs crmcustomer relationship management crm systems are centered around managing interactions with customers and prospects it leverages technology and processes to organize automate and synchronize sales marketing customer service and support activities the primary aim of crm is to improve relationships with customers streamline business processes and increase profitability by understanding and meeting customer needs effectively like an erm a crm system consolidates data however the nature of the data is entirely different while erms track and monitor risks crms care most about customer data interactions and insights that enable the company to enhance customer engagement and satisfaction crm implementation is crucial for sales teams marketing departments customer service representatives and executives who rely on customer data to drive sales growth and improve overall business performance alternatively erms are more useful for operational teams like risk insurance operations or finance an erm focuses on comprehensive risk management across all facets of an organization this tends to be inward looking though it can also incorporate external market forces a crm alternatively is much more outward facing while it will consider current processes and resources within a company a crm exists to monitor what is going on outside of the company with a company s arguably most important resource i e its customers example of ermexxonmobil is a robust example of how erm is implemented in a large multinational corporation operating in the oil and gas industry erm at exxonmobil is a structured approach that spans all levels of the organization aiming to identify assess manage and mitigate risks that could impact its business operations and overall performance information on exxonmobil s erm strategy is on the company s website exxonmobil s framework integrates five core elements organizing and aggregating risks rigorous risk identification practices a prioritization method systems and processes for risk management and comprehensive risk governance this multi layered approach includes defined roles and responsibilities for risk owners functional experts and independent verifiers the goal is that each type of risk is actively managed and aligned with corporate requirements and processes 3prior to initiating new developments the company employs advanced data and computer modeling to assess potential environmental socioeconomic and health risks associated with construction and operations engaging with communities through public meetings and collaborating with regulators ensures transparent communication and compliance with regulatory standards both of which can minimize risks in the future 3this rigorous process guided by an integrated erm also enables exxonmobil to implement tailored measures to prevent minimize or mitigate environmental impacts these different types of risks could range from changing weather patterns to sea level rise seismic activity or geological conditions exxonmobil s environmental assessments with its erm are conducted for both offshore and onshore facilities to deploy protective measures effectively and uphold operational safety 3