ENTERPRISE RISK MANAGEMENT (ERM) Definition

Bookmark and Share

ENTERPRISE RISK MANAGEMENT (ERM) identifies risks and opportunities, assesses them for likelihood and magnitude, determines responses strategy, and monitors progress. ERM integrates strategic planning, operations management, and internal control. Monitoring ERM is part of internal control activities.

Learn new Accounting Terms

EBIAT is Earnings Before Interest After Taxes. It  is a measure of a company's ability to produce income on its operations in a given year. See NOPAT.

FINANCIAL RESTRUCTURING is a process geared at avoiding the liquidation of the Company. Usually it involves agreement by third parties to satisfy creditors claims under certain terms and conditions. Financial restructuring may also be carried out by concluding an agreement with all creditors of the Company under which creditors will be paid on somewhat different terms than those initially accepted by the Company when credit and loans were extended. This form of financial restructuring enables the Company to continue its operations and minimize creditors' losses. See also RESTRUCTURING.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.