Introduction of Enterprise Risk Management

Organisations use the methods and processes of Enterprise Risk Management (ERM) in their businesses to manage the risks and take possession of the opportunities which are related to the objectives. It provides a framework for the management of risks that takes apart to identify the particular events and related circumstances. The identification of risks is the very first phase of enterprise management. The identification of risks must be accurate to proactive and effective enterprise risk management function. The researchers found a lack of risks in the related research and found it practicality during the interviewing chief officers of the risk management. The system enterprise risk management provides a consistent methodology for tracking, measuring, and reporting on the risks throughout an organisation.

Hoyt, R. E., & Liebenberg, A. P. (2011). The value of enterprise risk management. The value of enterprise risk management. , 795-822.

The risk officers have analysed the guidelines of ERM and the related data which were incurred 15 interviews along with the chief risk officers to generate the risk inventory. The risks that identified as well as also confirmed from results of the survey of the risk managers through the healthcare organisation’s range during the conference known as ASHRM in 2017. The cluster-based analysis has performed the results of the survey, as well as descriptive statistics,  were also developed.

Chapman, R. J. (2011). Simple tools and techniques for enterprise risk management. John Wiley & Sons, 553.

As risk professionals, we often focused on enterprise risk management as of end itself rather than a means to do support the objectives of the particular organisation. There are no specific methods to implement such a program that could target. Leaders of the organisation do not feel to understand only the importance of risk management, processes, and involvement. They have to ensure their continuity by winning. ERM is a more effective tool for decision making whenever it was implemented to minimise risks. There are some guidelines to implement enterprise risk management given below.

Inventory:

Organizations is doing already

Make it simple

Taking a small start

Quick wins and Representative to risk owners (fixes)

Make a report on progress

Develop soft skills

Defining What Kind of Your Organisation’s Value will Attain From ERM

There was always the present the difficulties in demonstrating ERM value by using the traditional investment metrics many companies and organisations made the business cases that highlighted four categories such as 1) risk mitigation, 2) shareholder value, 3)process consolidation and 4) silo elimination.

These are worthy goals that designed, but they could critical to measure and eloquent for the management. The organisational leadership did always focus on the value of the creation and did the link between enterprise risk management and the strategy of the organisation.

Research and Understanding Several Frameworks and Standards

Lundqvist, S. A. (2014). An exploratory study of enterprise risk management: Pillars of ERM. Journal of Accounting, Auditing & Finance, 393-429.

There was the only right way to define and manage the risk that might be encouraged the certain risk management standards and the relational framework. An executive report of RIMS 2011 did have reported “an overview of widely used risk management standards and Guidelines” did analyse the six types of the frameworks, and they all were nearly found the in the similar ways.

We did enlighten a certain number of common elements in the proposed research, and there we found missing or underdeveloped the success factors and most notable risk management and the most notable root cause analysis. Besides, we found 44% risk practitioners who had chosen to adopt the practices and for a certain number of standards.

Inventory of an Organizations is Doing Already of Enterprise Risk Management

Lam, J. (2017). Implementing Enterprise Risk Management: From Methods to Applications. John Wiley & Sons, 2017.

Many organisations have the power to control the risks which are understood already, such as the injuries of workers or the liabilities associated with the environment or any disturbance in business.  A person may be responsible for these kinds of controls which could be very useful and helpful in the risk assessment. The concerning understanding collectively common in the risk which should be avoided, mitigated accepted that could decrease the atonality of the organisation and concerns with the objectives which are acceptable.

Make it Simple of Enterprise Risk Management

AICPA. (2018). Enterprise Risk Management: Guidance for Practical Implementation and Assessment. John Wiley & Sons, 2018.

Organisations have to focus on the risk, risk possibilities, consequences, and how they can fix by using the framework. When the organisation had realized that why they are doing implement the process of enterprise risk management, the whole work did become the process. Organisations made it simple to handle it for employees learning; for example, they use simple plain English and also highlighted the previous approaches of enterprise risk management (ERM).

They did pay their whole attention to focus on the message that showed the objectives of organisations instead of the process of risk management. The proposed program agenda is less valuable than the attainment of value by making informed decisions bitterly about risks.

Taking a Small Start of Enterprise Risk Management

A large number of the implementer had already begun the implementation of the program by focusing too on the particular area of the business and their objectives. The strategic objective of the state of Washington was to improve safety and the health of all citizens, including youngsters and elders. For example, the goal of enterprise risk management’s goal or objective to encourage the implementation of the enterprise risk management in of the agencies in the state those counted 165.

Quick Wins and Representative to Risk Owners (Fixes) of Enterprise Risk Management

Organisations at the time of implementation of an enterprise risk management program did never try to cover the possibilities of risks. They did make a start by understanding the risks and by the strategic goals of the organisation. They did identify the risks and then analyse those to execute the strategies that were very helpful to gain quickly. But there were some errors or faults occurred, so they highlighted them and fixed them by using the ERM program and the assess these kinds of risks again.

Make a Report on Progress of Enterprise Risk Management

The progress reports highlighted the differences that enterprise risk management made in your organisation. They did report the progress in at least two ways, the first one was a progression, and the second one was risk materials. The periodic reports to the senior management on enterprise risk management could also include the progress regarding the milestones of the targeted objectives.

 References of Enterprise Risk Management

AICPA. (2018). Enterprise Risk Management: Guidance for Practical Implementation and Assessment. John Wiley & Sons, 2018.

Chapman, R. J. (2011). Simple tools and techniques for enterprise risk management. John Wiley & Sons, 553.

Hoyt, R. E., & Liebenberg, A. P. (2011). The value of enterprise risk management. The value of enterprise risk management., 795-822.

Lam, J. (2017). Implementing Enterprise Risk Management: From Methods to Applications. John Wiley & Sons, 2017.

Lundqvist, S. A. (2014). An exploratory study of enterprise risk management: Pillars of ERM. Journal of Accounting, Auditing & Finance, 393-429.