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How to Implement Enterprise Risk Management
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How to Implement Enterprise Risk Management
Discuss workforce management, performance management, retention, communication, motivation, contributing to business results and other topics.
Enterprise risk management (ERM) is a comprehensive approach to risk in business. The process itself consists of multiple steps, however it is designed to accomplish two major goals. First, it addres
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Forums » Topic Forums » General Forum » How to Implement Enterprise Risk Management
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How to Implement Enterprise Risk Management
posted at 12/19/2011 3:53 AM EST
on Workforce Management
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Posts: 9
First: 9/20/2011 Last: 4/4/2012 |
Enterprise risk management (ERM) is a comprehensive approach to risk in business. The process itself consists of multiple steps, however it is designed to accomplish two major goals. First, it addresses and categorizes all potential risks facing a business. Second, it provides a framework for mitigating risk while maximizing value for shareholders. A model for enterprise risk management that identifies the various risk categories and outlines specific steps to take when implementing the process has been developed. 1. Establish ContextIdentify the company's goals as well as its strengths and weaknesses. Asses the company's communication with shareholders and determine the major risks facing the company. 2. Identity RisksIdentify risks and classify them under one of the four main risk categories. The four categories are hazard, financial, operational and strategic. 3. Analyze/Quantify Risks Use quantitative and qualitative analysis to estimate probable outcomes for every risk identified in the previous step. 4. Integrate RisksCreate an overall risk profile for the company by combining the data obtained in the previous step. 5. Assess/Prioritize Risks Review the risk profile and decide which risks need the most attention. 6. Treat/Exploit Risks Determine the best strategies to use in dealing with risks. For example, the company may choose to avoid, transfer, or exploit a risk based on the company's goals and the kind of risk in question. 7. Monitor and Review Continually monitor the risk profile and review the effectiveness of the risk management strategies being used. Feed new information back into the first step and perform the entire process again. SBCS |
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Re: How to Implement Enterprise Risk Management
posted at 12/20/2011 12:23 PM EST
on Workforce Management
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Posts: 39
First: 11/7/2011 Last: 2/4/2013 |
In Response to Re: How to Implement Enterprise Risk Management: And your point in posting this was.....? Posted by nork4 bjsteele likes to post long-winded and unasked for "how tos" - but for what reason, I don't know. |
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