by: Christine Zafra

American and British proponents of risk management have agreed to include ERM (enterprise risk management) in the credit ratings of the companies. Although ERM is included in rating banks and other financial companies, they plan to include almost all companies now with their wider coverage (both public and private). They said that it’ll have a good effect on the companies because if ever the company gets a high risk management evaluation, the higher the chances that it’ll be given a much better credit rating. Credit ratings are needed since these will determine whether the company is worth it of a hefty loan.

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