Enterprise Risk Management

Definition ∞ Enterprise Risk Management (ERM) is a comprehensive framework used by organizations to identify, assess, mitigate, and monitor all potential risks that could impact their objectives. In the context of digital assets, ERM addresses operational, financial, compliance, security, and strategic risks associated with cryptocurrency holdings or blockchain deployments. It provides a structured approach to understanding and handling uncertainties across an organization.
Context ∞ As traditional enterprises increasingly interact with digital assets, the application of robust Enterprise Risk Management frameworks becomes a critical news topic. Reports often focus on how companies are adapting ERM strategies to address the unique volatility, regulatory ambiguities, and technological complexities of the crypto sector. Effective ERM is essential for institutions seeking to enter the digital asset space responsibly and maintain investor confidence.