A powerful brand name is undone by catastrophic product failures. An audit uncovers severe accounting irregularities. An earthquake cuts off the supply of a critical component. No doubt about it.
Bad things happen to good businesses, despite the best efforts of responsible managers.
That's why smart corporations are taking a more proactive stance in assessing and managing their everyday risks. Limit the Scope of Damage Obviously, no ERM initiative will make bad news palatable. But it can limit the scope of damage in the way that foreign currency hedges can soften the blow of a financial meltdown abroad. Reduced exposure to lawsuits can save a corporation billions of dollars. It also can protect an organization's reputation as well as the strength and integrity of its brands.