Enterprise risk management
Enterprise risk management
ERM
Enhanced corporate governance document to effectively identify, assess and manage risk so organizations could improve the risk management process.
Expands on internal control, providing a more robust and extensive focus on the broader subject of ERM
Does not replace the internal control framework but it incorporates the internal control framework within it.
Helps management set a strategy and objectives in order to effectively deal with uncertainty and associated risk and opportunity in order to create value.
Incorporates rather than replaces.
In other words ERM is: process , ongoing and following through an entity
•Effected by people at every level of an organization
•Applied in strategy setting
•Applied across the enterprise, at every level and unit and includes taking an entity's portfolio view of risk
•Designed to identify potential events that if they occur will affect the entity and to manage risk within its risk appetite •Able to provide reasonable assurance to an entity's management and board of directors •Geared to achievement of objectives in one or more separate but overlapping categories
•A
Enterprise risk process the risks a business entity faces in the course of carrying out its business activities. Such risks would include :
1.
2.
3.
4.
Hazard risk
Financial risk
Operational risk
Strategic risk
The ERM approach is a first attempt to recognize the interdependencies among risks and the treatment of risks across all business operations.
ERM frameworks can be adapted to fit the specifics of the organization’s culture and can be implemented in large or small organizations, service or manufacturing businesses, profit, nonprofit, or private entities.
WHY IMPLEMENT ERM?
In order to provide reasonable assurance to an entities management board and also that the business objectives are achieved.
We implement because we want to:
Reduce unacceptable performance variability
Align and integrate
ERM
Enhanced corporate governance document to effectively identify, assess and manage risk so organizations could improve the risk management process.
Expands on internal control, providing a more robust and extensive focus on the broader subject of ERM
Does not replace the internal control framework but it incorporates the internal control framework within it.
Helps management set a strategy and objectives in order to effectively deal with uncertainty and associated risk and opportunity in order to create value.
Incorporates rather than replaces.
In other words ERM is: process , ongoing and following through an entity
•Effected by people at every level of an organization
•Applied in strategy setting
•Applied across the enterprise, at every level and unit and includes taking an entity's portfolio view of risk
•Designed to identify potential events that if they occur will affect the entity and to manage risk within its risk appetite •Able to provide reasonable assurance to an entity's management and board of directors •Geared to achievement of objectives in one or more separate but overlapping categories
•A
Enterprise risk process the risks a business entity faces in the course of carrying out its business activities. Such risks would include :
1.
2.
3.
4.
Hazard risk
Financial risk
Operational risk
Strategic risk
The ERM approach is a first attempt to recognize the interdependencies among risks and the treatment of risks across all business operations.
ERM frameworks can be adapted to fit the specifics of the organization’s culture and can be implemented in large or small organizations, service or manufacturing businesses, profit, nonprofit, or private entities.
WHY IMPLEMENT ERM?
In order to provide reasonable assurance to an entities management board and also that the business objectives are achieved.
We implement because we want to:
Reduce unacceptable performance variability
Align and integrate