Certified Professional in Health Care Risk Management (CPHRM) Practice Exam 2025 - Free CPHRM Practice Questions and Study Guide

Enterprise Risk Management (ERM) aims to provide a comprehensive framework for identifying, assessing, managing, and monitoring risks that may affect an organization’s ability to achieve its objectives. The focus on managing risk and uncertainty, along with understanding how these elements are interconnected with total value, underscores the holistic approach ERM advocates.

Effective risk management involves recognizing that risks can arise from various sources and can have a multitude of impacts on an organization. By addressing these risks strategically, organizations can not only protect their assets and operations but also harness opportunities that may arise from uncertainty. This connection to total value emphasizes that managing risk is not merely about avoiding negative outcomes but also about fostering an environment where value creation is possible despite the inherent uncertainties in business operations.

In contrast, solely focusing on investment portfolios, legal liabilities, or marketing strategies limits the scope of risk management. While these areas are important components of an organization’s risk profile, they do not encompass the broader perspective of ERM, which is aimed at maximizing the organization’s overall resilience and potential for long-term success.