Measurable Value Creation Through an Advanced Approach to ERM

This paper presents an advanced approach to enterprise risk management (ERM) that significantly improves upon current approaches, largely due to two fundamental elements, namely: a focus on the management of strategic plans and, secondly, a heavy reliance upon probability theory. This paper is structured as follows. Section 1 reviews essential probability theory. Section 2 introduces the “Strategic Objectives at Risk” (SOAR) Methodology. Section 3 describes the SOAR process that is the risk management process at the heart of the SOAR Methodology. Section 4 discusses the direct measurement of stakeholder value added by the SOAR Methodology.