Benefits of enterprise risk management and its development in Georgia

Businesses now operate in an entirely different environment, compared with 20 years ago. Companies recognize Enterprise Risk Management (ERM) as a critical issue. In this article the author lists various explanations and classifications of risks for an enterprise, as well as those of management process, given by different scientists and sources. She also presents her own approaches. To show the difference between how ERM is evolving in Georgia and what it is in the developed countries, the results of two global ERM surveys and of the survey, conducted by the author in Georgia, are reviewed in her paper. Regretfully, in Georgia ERM is not even at the initial level of (any existing) maturity model. Financial crisis was a good lesson for many companies to learn and realize the necessity of the business continuity plans, particularly of Enterprise Risk Management, but interest to-wards ERM is still not high in the Georgian companies.