Recruiter's Glossary

Examples: Risk Avoidance • Strategic Risk • Risk Framework

ERM

Term from Risk Management industry explained for recruiters

Enterprise Risk Management (ERM) is a company-wide approach to identifying and managing potential business risks. Think of it as a big-picture safety net that helps organizations anticipate and prepare for things that could go wrong - from financial losses to reputation damage. It's different from traditional risk management because it looks at all risks across the entire organization instead of handling them separately. Companies use ERM to make better decisions about which risks to avoid, accept, or reduce. You might also see it called "Strategic Risk Management" or "Integrated Risk Management."

Examples in Resumes

Implemented ERM framework resulting in 30% reduction in operational risks

Led Enterprise Risk Management program across 5 business units

Developed ERM policies and procedures aligned with ISO 31000 standards

Typical job title: "Risk Management Professionals"

Also try searching for:

Risk Manager ERM Manager Risk Management Director Chief Risk Officer Risk Management Consultant Enterprise Risk Management Specialist Risk and Compliance Manager

Where to Find Risk Management Professionals

Professional Associations

Online Communities

• LinkedIn Risk Management Groups
• Reddit r/riskmanagement

Job Resources

Example Interview Questions

Senior Level Questions

Q: How would you implement an ERM program in a large organization?

Expected Answer: Look for answers that discuss creating a structured approach, involving key stakeholders, establishing risk appetite, developing policies, and ensuring board-level support. They should mention change management and communication strategies.

Q: How do you measure the success of an ERM program?

Expected Answer: Candidate should discuss both quantitative measures (like risk reduction percentages, cost savings) and qualitative aspects (improved decision-making, better risk awareness). They should mention specific metrics and reporting methods.

Mid Level Questions

Q: What's the difference between inherent and residual risk?

Expected Answer: Should explain that inherent risk is the natural level of risk before any controls are put in place, while residual risk is what remains after control measures are implemented.

Q: How do you create a risk assessment matrix?

Expected Answer: Should describe how to evaluate likelihood and impact of risks, create visual representations, and use the matrix for prioritizing risks and making decisions.

Junior Level Questions

Q: What are the main components of an ERM framework?

Expected Answer: Should mention risk identification, assessment, response planning, monitoring, and reporting as basic components. Understanding of these fundamental elements is essential.

Q: What's the purpose of a risk register?

Expected Answer: Should explain that it's a tool for documenting and tracking risks, including their description, potential impact, likelihood, and planned responses.