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Another area where the risk management discipline has developed in recent times is the approach that is referred to as enterprise or enterprise-wide risk management (ERM).Risks to the continuous supply will include unavailability of ingredients, disruption to manufacturing activities, contamination of the product, breakdown in supply transportation arrangements and disruption to distribution.This will involve analysis of the supply chain, evaluation of manufacturing activities and analysis of the delivery arrangements.This enterprise-wide approach has considerable advantages, because it analyses the potential for disruption to the overall stakeholder expectation.Health and safety, for example, is then viewed as a component in ensuring that staff are always available so that the overall process will not be disrupted, rather than (or perhaps as well as) a separate hazard management issue.A good example of the ERM approach is the pharmaceutica industry.

Another area where the risk management discipline has developed in recent times is the approach that is referred to as enterprise or enterprise-wide risk management (ERM). This approach to risk management will be discussed in more detail in a later Part. The main feature that distinguishes ERM from what might be considered more traditional risk management is the more integrated or holistic approach that is taken in ERM. In many ways, it can be considered to be a unifying philosophy that draws together management of all types of risks, rather than a new or different approach.
A good example of the ERM approach is the pharmaceutica industry. If a person is reliant on a particular medication, then it is vitally important that the medication is constantly available. From the point of view of the pharmaceutical company, this means that a core process for the organization must be the ‘constant availability of medication’ process.
If the pharmaceutical company takes this approach, it will look at the risks that could affect
this core process or stakeholder expectation on an enterprise-wide basis. This will involve
analysis of the supply chain, evaluation of manufacturing activities and analysis of the delivery
arrangements. The overall question that needs to be answered is what could prevent the continuous supply of medication. Risks to the continuous supply will include unavailability of
ingredients, disruption to manufacturing activities, contamination of the product, breakdown
in supply transportation arrangements and disruption to distribution.
This enterprise-wide approach has considerable advantages, because it analyses the potential
for disruption to the overall stakeholder expectation. Health and safety, for example, is then
viewed as a component in ensuring that staff are always available so that the overall process
will not be disrupted, rather than (or perhaps as well as) a separate hazard management
issue.