ZAMBIA RAILWAYS LIMITED URGENT NOTICE

ney General assured that there was nothing to worry about.

FOLLOWING the 2008 global financial crisis, Enterprise Risk Management (ERM) emerged as a critical issue in the most varied sectors of industry organisations. Today, with the world crippled by the novel coronavirus (COVID-19), the practice is now considered as the must have tool for the enhancement of corporate governance that should strengthen sound decision-making processes.

Firstly, it may be important to draw a distinction between the traditional risk management and enterprise risk management. As obvious as it may appear, it is the word “Enterprise” that makes the difference. Traditional risk management is a bottom-up process that focuses primarily on losses, costs and the negative side of risk; heavy on compliance and specification and mainly reactive. While enterprise risk management, on the other hand, has a much broader scope as it considers all the risk factors faced by the

Livingstone to Kitwe

organisation, and it helps the Board and management make informed decisions according to its acknowledged risk appetite. While ERM like the traditional risk management does consider compliance it is a top-down process that prevents and mitigates losses and looks for opportunities in adversity for the organization thereby creating value and ensuring that the organisation’s objectives are met with minimal disruptions.

ERM is a bigger picture risk management that adopts a holistic approach to managing risk, placing it within a portfolio of things that need to be managed in order that the organization achieves its objectives. While individual departments

ROUTE

to take account of risk implications on their objectives or a lack of that process could result in failure.

To integrate ERM into the strategic planning process, organisations need to ensure that the risk information is current, complete and reliable. For this purpose, robust procedures of risk assessments, treatment and