Risk management
Risk management is one of the most important components in empowering an organization to achieve its ultimate vision. With proper risk management culture and knowledge, team members will be “speaking” the same language, and they will leverage common analytical abilities to identify and mitigate potential risks as well as exploit opportunities in a timely fashion. In order to consolidate efforts, the existence of an integrated framework is crucial. This is why an ERM is necessary to the fulfillment of any organization’s goals and objectives.
In your final research project for the course, your task is to write a 7-10 page paper discussing the following concepts:
Introduction
Why should an organization Implement an ERM application?
What are some key challenges and solutions to Implementing an ERM?
What is Important for an effective ERM?
Discuss at least one real organization that has been effective with implementing an ERM framework or /application.
Conclusion, final thoughts for future research
Recommendation
Sample Solution
Risk management
Enterprise Risk Management [E.R.M] is a plan-based business strategy that aims to identify, assess, and prepare for any dangers, hazards, and other potentials for disaster, both physical and figurative, that may interfere with an organization’s operations and objectives. Organizations should implement E.R.M because it will produce many benefits to the organization if implemented successfully. An effective E.R.M Framework will allow an organization to gain a clear picture of its overall exposure to risk, and improve firm-wide understanding of risks and controls. E.R..M has its challenges. In an economy driven by positive return on investment, organizations often struggle to demonstrate sufficient E.R.M value to justify implementation costs. As an alternative to the business case, management may implement E.R.M on a pilot basis, which typically involves a prominent business unit with large financial risk and a business unit with higher non-financial exposures such as strategic, reputation or operational risk.
