Enterprise Risk Management (ERM) is a Process

• Effected by Brown management and the Corporation,
• Applied in strategy setting and across the University,
• Designed to identify potential events that may affect the University positively or negatively,
• Established to enable management of risks within the University’s risk appetite,
• Architected to enable management to continuously maintain processes and associated controls in a manner which maximizes return on capital, while ensuring compliance with all relevant laws and regulations, which provides for timely communications and clear direction to decision-makers and line management, that are consistent with University objectives and risk tolerances, and
• Intended to provide reasonable assurance regarding the achievement of University objectives.

Maintaining and/or improving Brown University’s capability to monitor and manage risk and uncertainty is critical to the achievement of Brown University objectives. 

Primary Objectives/Benefits of ERM

• Protect University value/reputation/brand,
• Align University strategies with the Brown’s overall appetite for risk,
• Validate strategic decisions in a changing economy/industry,
• Provide assurance regarding the achievement of Brown’s objectives,
• Increase the University’s appeal to donors and sponsoring organizations,
• Arm management with information to support decisions regarding the most efficient/appropriate risk management techniques, and
• Enable management to react in a timely and appropriate manner to changing internal and external risk factors.