Enterprise Risk Management (ERM) is considered to have a significant difference compared with traditional risk management approaches because ERM

The fundamental and most significant difference of Enterprise Risk Management (ERM) is its holistic and integrated nature. Traditional risk management often operates in functional or departmental silos, addressing risks like finance, operations, or safety in isolation. ERM, by contrast, provides a comprehensive, top-down, portfolio view of all significant risks across the entire organization. This enterprise-wide perspective enables the identification of interconnected risks and aligns risk management activities with the organization's strategic objectives. The principle of integration is central to the ISO 31000 framework, which states that risk management should be an integral part of all organizational activities, functions, and processes.

A. Risk management increases the likelihood of achieving objectives by managing uncertainty; it cannot provide an absolute guarantee or ensure their achievement.

C. While ERM addresses strategic, tactical, and operational risks, this is a consequence of its holistic approach. The key differentiator is the integrated manner in which it does so, not merely the scope.

1. ISO 31000:2018

Risk management — Guidelines

Section 4

Principles. The first principle listed is "(a) Integrated

" stating: "Risk management is an integral part of all organizational activities." This highlights that integration is the foremost characteristic.

2. Antonucci

D. (2017). Risk Management

Internal Control

and Corporate Governance. In Intelligent Systems for Operations: A Guide to Data-Driven Applications (pp. 13-32). De Gruyter. On page 16

the text distinguishes ERM from traditional risk management by noting that ERM "is a holistic approach" and that traditional methods were "fragmented and managed in silos."

3. Hoyt

R. E.

& Liebenberg

A. P. (2011). The Value of Enterprise Risk Management. The Journal of Risk and Insurance

78(4)

795–822. The introduction (p. 796) explicitly contrasts ERM with traditional risk management (TRM)

stating

"Unlike TRM

which has typically involved the management of risks in silos

ERM calls for the coordinated management of all risks." (https://doi.org/10.1111/j.1539-6975.2011.01413.x)

4. Fraser

J. R.

& Simkins

B. J. (2016). The challenges of and solutions for implementing enterprise risk management. Business Horizons

59(6)

689-698. The article discusses the evolution from "silo-based risk management" to the "holistic portfolio view of risk" that defines ERM (Section 2

"The Evolution of ERM"). (https://doi.org/10.1016/j.bushor.2016.06.005)