Enterprise Risk Management

Risk governance is crucial to sustain an effective enterprise risk management (ERM) program. Baker Tilly’s risk advisors work closely with you to design the key components of governance (e.g., charters, risk committees, risk accountability and ownership guidelines) that integrate policies and processes to guide your organization in identifying, evaluating, responding to, monitoring and reporting on risks across the enterprise. We help align risk management activities to your strategic priorities, establishing accountability at every level for managing risks effectively to achieve long-term success. 

Baker Tilly’s proprietary tool, RiskDiagnostic™ (an advanced ERM maturity model approach), enables our risk advisors to evaluate the effectiveness of your ERM program, existence of key components and identify potential gaps within the program. We collaborate with you to develop an ERM roadmap tailored towards achieving your desired future state ERM program through stakeholder education, focused insights, facilitated discussions and consensus building. As a result, the actionable roadmap highlights opportunities for enhancing your risk management capabilities. 

Baker Tilly’s risk advisors work closely with you to identify and build leadership consensus to the top risks that may have the greatest potential impact on your organization’s strategic priorities and overall performance. We use our proprietary RiskScan™ tool to conduct comprehensive external scans, using publicly available information to better understand your current risk landscape and deliver valuable insights on key external risks and highlight potential emerging risks. We also employ our proprietary RiskSynergy™ tool to facilitate focused, real-time conversations with cross-functional key stakeholders and collect risk data. Through these discussions, we guide our clients to develop a comprehensive risk register through the consideration of the financial, operational, regulatory, external environment, strategic and technological (FOREST) risk domain categories.   

Leveraging the output of the risk identification process, Baker Tilly’s risk advisors assist you with assessing (prioritizing) risks through the application of customized rating criteria that evaluates the likelihood, impact and mitigation effectiveness. We use our proprietary RiskSynergy™ tool to facilitate discussion with cross-functional stakeholders to validate that appropriate risks have been identified with proper alignment on risk exposure ratings to reach a consensus-driven enterprise risk profile and needed risk response (enhance, review or watch).   

Baker Tilly’s risk advisors collaborate with you to facilitate the development of risk response plans for your organization’s top enterprise risks. This effort is a cornerstone of any ERM program, as it enables the organization to mitigate potential negative impacts on strategic priorities and performance while also unlocking potential upside opportunities. We align risk response to risk root causes that are common across risks, resulting in multiple risks being reduced through a single mitigation strategy.   

Using Baker Tilly’s metric-driven monitoring process, we capture key risk indicators (KRIs) and key performance indicators (KPIs) that can be used to monitor mitigation and process controls through actionable reporting measures that are aggregated and rolled up into a comprehensive reporting view of the risks within the enterprise risk profile.   

After enterprise risks have been identified and assessed qualitatively, more mature risk management programs can leverage Baker Tilly’s Monte-Carlo model driven analysis tool, RiskQuantification™, to arrive at scenario and variance backed dollar exposure numbers, both for select enterprise risks and the entire risk portfolio. This service helps to inform capital allocation and strategic decision-making targeted to the top risks for your organization, and demonstrates the ROI of risk mitigation.  

Baker Tilly’s risk advisors work closely with you to develop an optimal approach to seamlessly incorporate risk management practices into executive and/or strategic planning discussions. We further strengthen this approach by developing integrated risk processes to provide unified reporting to leadership, enabling a consolidated view of risk exposure.  We focus on promoting cross-functional risk management efforts across your organization to create a holistic perspective that leads to sustainable and resilient outcomes. 

Baker Tilly’s executive ERM training provides a tailored approach to training your executives and senior leadership, empowering them with the skills, knowledge and insights to confidently navigate uncertainty and strategically position your organization for success. Our service offers the flexibility to customize the training content to align with your specific industry, organizational structure and risk landscape. Baker Tilly’s risk advisors focus on the strategic aspects of ERM, ensuring your leadership team understands how to integrate risk management with business strategy, turn risk into opportunity, drive value and support informed decision-making at the highest levels.  

Baker Tilly’s risk advisors collaborate with you to develop or refine your organization’s risk appetite and tolerance thresholds that align with your organization’s strategic and performance priorities. We will work diligently with you to thoroughly understand your business, priorities, challenges and risk landscape to provide practical advice on how to articulate and implement your risk appetite effectively. Our focus is to help you align risk-taking with opportunities, balancing potential rewards with acceptable risks, enabling your organization to pursue growth confidently.