1. Introducing ERM

Enterprise Risk Management (ERM) is an enterprise-wide process to identify, assess, and manage all key risks. The goal is to generate value for all stakeholders. Based on this definition, the chapter explains which key success criteria constitute modern risk management. We learn what needs to be paid special attention to in practice to exploit the potential of ERM to create value. In particular, we discuss that financial risks are not the most important risk category in most industrial companies. Further, positive risk culture is supported if historically grown “risk silos” can be overcome. Risk managers need to establish a uniform ERM language across the company. Companies need to understand ERM as a self-evident part of the strategy development, strategy execution, and decision-making. Then, ERM is capable to unfold its value-generating potential.