What is Enterprise Risk Management?
Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines ERM as:
Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
Enterprise risk management requires an entity to take a portfolio view of risk. It considers activities at all levels of the organization.
ERM NEEDS AND BENEFITS
A good business knows well that there is nothing like closely monitoring business and financial risks and implementing mitigation plans and risk management strategies based on data measures. Risk Management is an effective tool for managing the uncertainties resulting from various business risks. Many of these business risks go beyond traditional risk that can be insured. In today’s business environment, not all risks can be insured. Infact, some risks are better retained within the business and managed for better returns.
In August 2004, Committee of Sponsoring Organizations (COSO) issued its Enterprise Risk Management – Integrated Framework after completing. The framework, which includes an executive summary and application techniques, expands on the Internal controls framework.
HOW CAN RISKPRO HELP
Riskpro has strong domain expertise when it comes to Enterprise Risk Management. Our experiences range from Financial Services to specialised manufacturing businesses. Our unique ERM Methodologies and Risk Library ensure that the project is likely to be of shorter duration and successful.
To know more about our Enterprise Risk Management advisory, please contact us at email@example.com