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why ERM versus traditional risk management

the journal of Michael Werneburg

twenty-seven years and one million words

I'm studying for a course on risk financing, and have a quibble with an answer "in the book". The course is "Risk Financing", coded as the ARM's #56. The question, in the Course Guide, reads:

"Explain why an organization may decide to manage its business risk using an enterprise risk management (ERM) approach."

Off the top of my head, I wrote:

"A holistic approach to risk management synthesizes hazard risk with risk to the achievement of business objectives, and highlights the cumulative risks that arise from their intersection and multiplication. This broadened approach allows better design of risk control, and brings risk awareness to all areas in the organization where decisions are made."

The answer from the Course Guide says:

"An organization may decide to manage its business risks by using an ERM approach to maximize shareholder value."

I'm guessing this was written by an MBA or possibly an accountant, not a ERM practitioner.