Not a day goes by without a news story about how banks are denying credit to even the most credit-worthy prospects and customers because of a cash-strapped economy.

Whether you're an individual applying for a car loan or a small business owner applying for a credit-line increase, banks are turning down loan applications at an alarmingly high rate. So what measures can a business take in these "credit crunch" times to boost its chances of getting a loan?

The answer: Develop and implement your company's Enterprise Risk Management (ERM) strategy. In light of the volatility of the financial markets compounded by the increased risk of doing business today, ERM programs are being seen by lenders, investors, and other shareholders as a central and necessary component of a business operation. In fact, your corporate credit rating and your ability to borrow may depend on the strength of your ERM strategy. The days of pleading ignorance of an unanticipated risk are long gone: Management is being held responsible for the risks they take even if the consequences are beyond their control.

A sound ERM strategy betters your chances of receiving a credit-line advance because it shows lenders that you have a strategy to respond to unanticipated occurrences. Particularly in an economy fraught with peril and uncertainty, banks need the assurance that your company qualifies as a good risk. According to Wikipedia, "ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization's objectives (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress."

PS. Did you know that each billion dollars is 10,000,000 - $100 bills, or 43,000 inches tall or 3,573 feet tall - a little over 2/3 mile high? How big a building would it take to even hold that much? If that is hard to visualize, a trillion dollars is a million million dollars, or $1,000,000,000,000.

When the economic climate changes as dramatically and as frequently as it does nowadays, contingency planning and risk management should be on every executive's dashboard. Face your risks squarely and come up with a flexible ERM plan. Don't wait until you're forced to make a Mayday call to a world that is embroiled in its own crisis.