Enterprise Risk Management Strategy Research Paper.
1) Discusses strategy and how ERM can be integrated with an organization’s overall strategy.
2) Prepare a research paper on some of the various issues, protocols, methods, frameworks you found and discuss how – if possible – organizations can use ERM as strategy. Enterprise Risk Management Strategy Research Paper.
3) It is perfectly acceptable if you deem ERM cannot be used as strategy, just back up your claim with scholarly research and justifications.
4) Your paper should meet these requirements: 4-6 pages. Introduction, Body, Fully Developed Content and Conclusion. At least 2 scholarly journal article to support your positions, claims, and observations. Plagiarism free.
Enterprise risk management (ERM) is the process of identifying and addressing methodically the potential events that represent risks to the achievement of strategic objectives, or to opportunities to gain competitive advantage.
Risk management is an essential element of the strategic management of any organisation and should be embedded in the ongoing activities of the business. Two widely referenced frameworks include the Committee of Sponsoring Organizations of the Treadway Commission COSO ‘ERM – Integrated Framework’; and the guidance developed by Airmic and the Institute of Risk Management IRM – ‘A structured approach to ERM and the requirements of ISO 31000’.
The fundamental elements of ERM are the assessment of significant risks and the implementation of suitable risk responses. Risk responses include: acceptance or tolerance of a risk; avoidance or termination of a risk; risk transfer or sharing via insurance, a joint venture or other arrangement; and reduction or mitigation of risk via internal control procedures or other risk prevention activities.
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Other important ERM concepts include the risk philosophy or risk strategy, risk culture and risk appetite. These are expressions of the attitude to risk in the organisation, and of the amount of risk that the organisation is willing to take. These are important elements of governance responsibility. Enterprise Risk Management Strategy Research Paper.
Management responsibilities include the risk architecture or infrastructure, documentation of procedures or risk management protocols, training, monitoring and reporting on risks and risk management activities.
Source: How to Communicate Risks Using Heat Maps, CGMA
What benefits does ERM provide?
- Greater awareness about the risks facing the organisation and the ability to respond effectively
- Enhanced confidence about the achievement of strategic objectives
- Improved compliance with legal, regulatory and reporting requirements
- Increased efficiency and effectiveness of operations. Enterprise Risk Management Strategy Research Paper.
Questions to consider when Implementing ERM
- What are the main components or drivers of our business strategy?
- What internal factors or events could impede or derail each of these components?
- What external events could impede or derail each of the components?
- Do we have the right systems and processes in place to address these internal and external risks? Enterprise Risk Management Strategy Research Paper.