Traditional companies and a lot of companies these days are adopting risk management techniques where they are only looking at the tangible and physical losses within the company, but not extending it to actually the intangible side of things. So becoming more and more important are things like customer satisfaction or reputational risk, or brand image, corporate culture risk and how is that impacting it. In addition to that, a very familiar model in the industry is the COSO Framework, and they like to frame risks from a strategic, operational, compliance, and reporting perspective as well. So when you layer that in, plus they look at tangible and intangible risks, you really are going to get a wholesome view of enterprise risk management.
Enterprise risk management is not a one-man show.
To start, the oversight function around the board of directors is the highest level that you would want to be engaged within ERM. And then from there, you have the audit committee, which historically has been charged with duties around financial reporting risk, but more importantly and with the economic conditions we are operating in now, they have more of a responsibility to look at emerging risk as well. So getting updates from an ERM perspective are super-important as well for them.