Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization's objectives (threats and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring process. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall.
ERM can also be described as a risk-based approach to managing an enterprise, integrating concepts of internal control, the Sarbanes–Oxley Act, data protection and strategic planning. ERM is evolving to address the needs of various stakeholders, who want to understand the broad spectrum of risks facing complex organizations to ensure they are appropriately managed. Regulators and debt rating agencies have increased their scrutiny on the risk management processes of companies.
According to Thomas Stanton of Johns Hopkins University, the point of enterprise risk management is not to create more bureaucracy, but to facilitate discussion on what the really big risks are.[1]
There are various important ERM frameworks, each of which describes an approach for identifying, analyzing, responding to, and monitoring risks and opportunities, within the internal and external environment facing the enterprise. Management selects a risk response strategy for specific risks identified and analyzed, which may include:
Monitoring is typically performed by management as part of its internal control activities, such as review of analytical reports or management committee meetings with relevant experts, to understand how the risk response strategy is working and whether the objectives are being achieved.
In 2003, the Casualty Actuarial Society (CAS) defined ERM as the discipline by which an organization in any industry assesses, controls, exploits, finances, and monitors risks from all sources for the purpose of increasing the organization's short- and long-term value to its stakeholders."[2] The CAS conceptualized ERM as proceeding across the two dimensions of risk type and risk management processes.[2] The risk types and examples include:[3]
The risk management process involves:[4]
The COSO "Enterprise Risk Management-Integrated Framework" published in 2004 (New edition COSO ERM 2017 is not Mentioned and the 2004 version is outdated) defines ERM as 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 risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives."[5]
The COSO ERM Framework has eight components and four objectives categories. It is an expansion of the COSO Internal Control-Integrated Framework published in 1992 and amended in 1994. The eight components are:
The four objectives categories - additional components highlighted - are:
ISO 31000 is an International Standard for Risk Management which was published on 13 November 2009, and updated in 2018. An accompanying standard, ISO 31010 - Risk Assessment Techniques, soon followed publication (December 1, 2009) together with the updated Risk Management vocabulary ISO Guide 73. The standard set out eight principles based around the central purpose, which is the creation and protection of value.[6]
Organizations by nature manage risks and have a variety of existing departments or functions ("risk functions") that identify and manage particular risks. However, each risk function varies in capability and how it coordinates with other risk functions. A central goal and challenge of ERM is improving this capability and coordination, while integrating the output to provide a unified picture of risk for stakeholders and improving the organization's ability to manage the risks effectively.
The primary risk functions in large corporations that may participate in an ERM program typically include:
Various consulting firms offer suggestions for how to implement an ERM program.[7] Common topics and challenges include:[8]
In addition to information technology audit, internal auditors play an important role in evaluating the risk-management processes of an organization and advocating their continued improvement. However, to preserve its organizational independence and objective judgment, Internal Audit professional standards indicate the function should not take any direct responsibility for making risk management decisions for the enterprise or managing the risk-management function.[9]
Internal auditors typically perform an annual risk assessment of the enterprise, to develop a plan of audit engagements for the upcoming year. This plan is updated at various frequencies in practice. This typically involves review of the various risk assessments performed by the enterprise (e.g., strategic plans, competitive benchmarking, and SOX 404 top-down risk assessment), consideration of prior audits, and interviews with a variety of senior management. It is designed for identifying audit projects, not to identify, prioritize, and manage risks directly for the enterprise.
The risk management processes of corporations worldwide are under increasing regulatory and private scrutiny. Risk is an essential part of any business. Properly managed, it drives growth and opportunity. Executives struggle with business pressures that may be partly or completely beyond their immediate control, such as distressed financial markets; mergers, acquisitions and restructurings; disruptive technology change; geopolitical instabilities; and the rising price of energy.
Section 404 of the Sarbanes–Oxley Act of 2002 required U.S. publicly traded corporations to utilize a control framework in their internal control assessments. Many opted for the COSO Internal Control Framework, which includes a risk assessment element. In addition, new guidance issued by the Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board in 2007 placed increasing scrutiny on top-down risk assessment and included a specific requirement to perform a fraud risk assessment.[10] Fraud risk assessments typically involve identifying scenarios of potential (or experienced) fraud, related exposure to the organization, related controls, and any action taken as a result.
The New York Stock Exchange requires the Audit Committees of its listed companies to "discuss policies with respect to risk assessment and risk management." The related commentary continues: "While it is the job of the CEO and senior management to assess and manage the company’s exposure to risk, the audit committee must discuss guidelines and policies to govern the process by which this is handled. The audit committee should discuss the company’s major financial risk exposures and the steps management has taken to monitor and control such exposures. The audit committee is not required to be the sole body responsible for risk assessment and management, but, as stated above, the committee must discuss guidelines and policies to govern the process by which risk assessment and management is undertaken. Many companies, particularly financial companies, manage and assess their risk through mechanisms other than the audit committee. The processes these companies have in place should be reviewed in a general manner by the audit committee, but they need not be replaced by the audit committee."[11]
Standard & Poor's (S&P), the debt rating agency, plans to include a series of questions about risk management in its company evaluation process. This will rollout to financial companies in 2007.[12] The results of this inquiry is one of the many factors considered in debt rating, which has a corresponding impact on the interest rates lenders charge companies for loans or bonds.[13] On May 7, 2008, S&P also announced that it would begin including an ERM assessment in its ratings for non-financial companies starting in 2009,[14] with initial comments in its reports during Q4 2008.[15]
International Finance Corporation Performance Standards[16] focus on the management of Health, Safety, Environmental and Social risks and impacts. The third edition was published on January 1, 2012 after a two-year negotiation process with the private sector, governments and civil society organizations. They have been adopted by the Equator Principles Banks, a consortium of over 118 commercial banks in 37 countries.
Data privacy rules, such as the European Union's General Data Protection Regulation, increasingly foresee significant penalties for failure to maintain adequate protection of individuals' personal data such as names, e-mail addresses and personal financial information, or alert affected individuals when data privacy is breached. The EU regulation requires any organization--including organizations located outside the EU--to appoint a Data Protection Officer reporting to the highest management level[17] if they handle the personal data of anyone living in the EU.
In 2003, the Enterprise Risk Management Committee of the Casualty Actuarial Society (CAS) issued its overview of ERM.[18] This paper laid out the evolution, rationale, definitions, and frameworks for ERM from the casualty actuarial perspective, and also included a vocabulary, conceptual and technical foundations, actual practice and applications, and case studies.[18]
The CAS has specific stated ERM goals, including being "a leading supplier internationally of educational materials relating to Enterprise Risk Management (ERM) in the property casualty insurance arena,"[19] and has sponsored research, development, and training of casualty actuaries in that regard.[20] The CAS has refrained from issuing its own credential; instead, in 2007, the CAS Board decided that the CAS should participate in the initiative to develop a global ERM designation, and make a final decision at some later date.[21]
In 2007, the Society of Actuaries developed the Chartered Enterprise Risk Analyst (CERA) credential in response to the growing field of enterprise risk management.[22] This is the first new professional credential to be introduced by the SOA since 1949.[23] A CERA studies to focus on how various risks, including operational, investment, strategic, and reputational combine to affect organizations. CERAs work in environments beyond insurance, reinsurance and the consulting markets, including broader financial services, energy, transportation, media, technology, manufacturing and healthcare.[23]
It takes approximately three to four years to complete the CERA curriculum which combines basic actuarial science, ERM principles and a course on professionalism. To earn the CERA credential, candidates must take five exams, fulfill an educational experience requirement, complete one online course, and attend one in-person course on professionalism.[23]
Initially all CERAs were members of the Society of Actuaries[24] but in 2009 the CERA designation became a global specialized professional credential, awarded and regulated by multiple actuarial bodies;[25] for example Chartered Enterprise Risk Actuary from the Institute and Faculty of Actuaries.
The whole point of enterprise risk management is not to create another layer of bureaucracy, but rather to have your chief risk officer facilitate the conversations and then the discussions about priorities – what are the really big risks we've got to grapple with.
{{cite journal}}
|journal=
{{cite book}}
بلينيوس الأكبر (باللاتينية: Caius Plinius Secundus) معلومات شخصية الميلاد العقد 20[1][2][3][4] الوفاة سنة 79[5][2][6][7][3][8] سبب الوفاة أنواع الثورات البركانية مواطنة روما القديمة الأولاد بلينيوس الأصغر أقرباء بلينيوس الأصغر (أب…
Mazmur 20Naskah Gulungan Mazmur 11Q5 di antara Naskah Laut Mati memuat salinan sejumlah besar mazmur Alkitab yang diperkirakan dibuat pada abad ke-2 SM.KitabKitab MazmurKategoriKetuvimBagian Alkitab KristenPerjanjian LamaUrutan dalamKitab Kristen19← Mazmur 19 Mazmur 21 → Mazmur 20 (disingkat Maz 20, Mzm 20 atau Mz 20; penomoran Septuaginta: Mazmur 19) adalah sebuah mazmur dalam Kitab Mazmur di Alkitab Ibrani dan Perjanjian Lama dalam Alkitab Kristen. Mazmur ini digubah oleh Daud. Tek…
Jordi Jair Govea MerlínDatos personalesNombre completo Jordi GoveaNacimiento Esmeraldas, Ecuador9 de marzo de 1999 (24 años)Nacionalidad(es) Ecuatoriana EspañolaAltura 1,79 m (5′ 10″)Peso 75 kg (165 lb)Carrera deportivaDeporte FútbolClub profesionalDebut deportivo 2022(F. C. Cincinnati 2)Club Beroe Stara ZagoraLiga Liga Bulgaria A PFGPosición Lateral izquierdoDorsal(es) 44[editar datos en Wikidata] Jordi Jair Govea Merlín (Esmeraldas, Ecuador; 9 de marzo d…
The following is a discography of the Indian musician M. S. Viswanathan (1928–2015). M. S. Viswanathan composed film scores for films in Tamil, Malayalam, Kannada, Telugu and Hindi. A Graphical Representation of M.S.Viswanathan's Discography Over the Years with Colors to Represent Different Languages. Tamil film 1950s Year Film Name Notes 1952 Panam Composed along with T. K. Ramamoorthy 1953 Ammalakkalu Co-Music by C. R. SubbaramanComposed along with T. K. Ramamoorthy (Background Score) Maruma…
Wasp-class amphibious assault ship For other ships with the same name, see USS Bataan. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: USS Bataan LHD-5 – news · newspapers · books · scholar · JSTOR (March 2019) (Learn how and when to remove this template message) USS Bataan underway in 1999 History United …
Public cemetery in Leicester, England Welford Road Cemetery Welford Road Cemetery is a public cemetery in Leicester, England. History The Leicester General Cemetery Company was founded in 1845, and the cemetery itself opened in 1849.[1] The buildings and plan of the cemetery were designed by J. R. Hamilton and J. M. Medland, who also designed cemeteries for Birmingham and Plymouth.[1] Welford Road Cemetery was initially intended for dissenters, but the local Anglican community wa…
Zona waktu Amerika Serikat dan Kanada: UTC-3:30Waktu Standar Newfoundland (Waktu Musim Panas Newfoundland: UTC-2:30) UTC-4Waktu Standar Atlantik (Waktu Musim Panas Atlantik: UTC-3) UTC-5Waktu Standar Timur(Waktu Musim Panas Timur: UTC-4) UTC-6Waktu Standar Tengah (Waktu Musim Panas Tengah: UTC-5) UTC-7Waktu Standar Pegunungan (Waktu Musim Panas Pegunungan: UTC-6) UTC-8Waktu Standar Pasifik (Waktu Musim Panas Pasifik: UTC-7) UTC-9Waktu Standar Alaska (Waktu Musim Panas Alaska: UTC-8) UTC-10Waktu …
Former Internet café CyberiaCyberia, London, 1994IndustryInternet cafeFoundedSeptember 1994HeadquartersWhitfield Street, London, England, UKKey peopleEva Pascoe, Keith Teare, David Rowe, Gené TeareWebsitewww.cyberiacafe.net Cyberia, London was an internet cafe founded in London in September 1994, which provided desktop computers with full internet access in a café environment. Situated at 39 Whitfield Street in Fitzrovia, the cafe was founded by Eva Pascoe, David Rowe, Keith Teare and Gené T…
British art historian Not to be confused with William Mostyn Owen, Member of Parliament for Montgomeryshire. William Mostyn-OwenBorn(1929-05-10)10 May 1929Died2 May 2011(2011-05-02) (aged 81)NationalityBritishEducationEton CollegeAlma materMagdalene College, CambridgeOccupationArt historianSpouse(s)Gaia Servadio (c. 1961–1989) Faith Clark Jane Martineau (m. 1992)Children3, including Allegra Mostyn-Owen William Willy Mostyn-Owen (10 May 1929 – 2 May 20…
Portugal en los Juegos Olímpicos Bandera de PortugalCódigo COI PORCON Comité Olímpico de Portugal(pág. web)Juegos Olímpicos de Seúl 1988Deportistas 64 en 14 deportesAbanderado João RebeloMedallasPuesto: 29 1 0 0 1 Historia olímpicaJuegos de verano 1912 • 1920 • 1924 • 1928 • 1932 • 1936 • 1948 • 1952 • 1956 • 1960 • 1964 • 1968 • 1972 • 1976…
American engineer and NASA astronaut Mark Vande HeiOfficial portrait, 2016Born (1966-11-10) November 10, 1966 (age 57)Falls Church, Virginia, U.S.StatusActiveNationalityAmericanOccupationISS flight controllerSpace careerNASA AstronautRankColonel, United States ArmyTime in space523 days 08 hours 59 minutesSelection2009 NASA Group 20Total EVAs4[1]Total EVA time26 hours 42 minutesMissionsSoyuz MS-06 (Expedition 53/54), Soyuz MS-18/Soyuz MS-19 (Expedition 64/65/66)Mission insignia Vande…
Antiques market in Bermondsey, London Bermondsey MarketThe market in 2014LocationBermondsey, Southwark, Greater LondonCoordinates51°29′51″N 0°04′52″W / 51.4974°N 0.0811°W / 51.4974; -0.0811AddressBermondsey SquareOpening date1950ManagementBAM 2021 LtdOwnerSouthwark London Borough CouncilEnvironmentOutdoorGoods soldAntiques, collectables, vintage, jewellery, silver & goldDays normally openFridayParkingOn streetWebsitehttps:..bermondseyantiquemarket.co.uk Be…
第218步兵師218. Infanterie-Division法国战役后本师官兵在柏林接受约瑟夫·戈培尔和弗里德里希·弗洛姆的检阅存在時期1939年8月至1945年5月國家或地區 納粹德國部門陸軍種類步兵規模師參與戰役 波兰战役 法国战役 霍爾姆口袋战役 库尔兰口袋战役 標識师徽章 第218步兵師(德語:218. Infanterie-Division)是納粹德國國防軍陸軍的一個步兵師。該師於1939年8月組建[1]。 該師組建…
This article is about the island named Fukue. For the former city named Fukue, see Fukue, Nagasaki. 32°41′N 128°45′E / 32.683°N 128.750°E / 32.683; 128.750 Location of Fukue Island (Fukuejima) in the Gotō Islands Fukue Island (福江島, Fukue-jima) is the largest and southernmost of the Gotō Islands in Japan.[1] It is part of the city of Gotō in Nagasaki Prefecture. Gotō-Fukue Airport is on this island. As of July 31, 2016, the population is 38,481.…
Binirayan Sports ComplexTheir grandstand during the speech of Philippine President Rodrigo Duterte in 2017 Palarong PambansaLocationSan Jose de Buenavista, Antique, PhilippinesCoordinates10°44′49″N 121°56′49″E / 10.74694°N 121.94694°E / 10.74694; 121.94694ConstructionRenovated2017 The Binirayan Sports Complex is a sports facility complex located in San Jose de Buenavista, Antique, Philippines. Background The sports complex was carved out of La Granja Hill and …
Map all coordinates using: OpenStreetMap Download coordinates as: KML GPX (all coordinates) GPX (primary coordinates) GPX (secondary coordinates) Suburb of Moreton Bay, Queensland, AustraliaBray ParkMoreton Bay, QueenslandA suburban street in Bray ParkBray ParkCoordinates27°17′38″S 152°58′05″E / 27.2938°S 152.9680°E / -27.2938; 152.9680 (Bray Park (centre of suburb))Population10,246 (2016 census)[1] • Density2,277/km2 (5,900/sq…
Irrational fear of animal species This article relies largely or entirely on a single source. Relevant discussion may be found on the talk page. Please help improve this article by introducing citations to additional sources.Find sources: Zoophobia – news · newspapers · books · scholar · JSTOR (April 2012) For the webcomic, see ZooPhobia (webcomic). Zoophobia, or animal phobia, is the irrational fear or aversion towards animals (excluding humans). Zoophob…
Si ce bandeau n'est plus pertinent, retirez-le. Cliquez ici pour en savoir plus. Cet article ne cite pas suffisamment ses sources (août 2017). Si vous disposez d'ouvrages ou d'articles de référence ou si vous connaissez des sites web de qualité traitant du thème abordé ici, merci de compléter l'article en donnant les références utiles à sa vérifiabilité et en les liant à la section « Notes et références » En pratique : Quelles sources sont attendues ? Comment…
Hindi/Urdu poet (1859–1932) Nathuram SharmaBorn1859 (1859)Harduaganj, North-Western Provinces, British IndiaDied21 August 1932(1932-08-21) (aged 73)Harduaganj, United Provinces, British IndiaChildrenHari Shankar SharmaWebsitejaischauhan.blogspot.in Nathuram Sharma (1859 – 21 August 1932), better known by his pen-name Mahakavi Shankar, was a Hindi and Urdu poet from Harduaganj, Aligarh, North-Western Provinces (now Uttar Pradesh), British India. He worked with the Irrigation Departm…
Diversified American company Pan Am SystemsFormerlyGuilford Transportation IndustriesTypePrivateIndustryrail transportmanufacturing and energytransportation related brandsreal estateFounded1998FounderTimothy MellonDefunctJune 1, 2022 (2022-06-01)FateAcquired by CSX CorporationHeadquartersPortsmouth, New Hampshire, United States of AmericaSubsidiaries Pan Am Railways Pan Am Southern Pan Am Services Pan Am Brands Perma Treat Corp. Aroostook & Bangor Resources NorthPoint Pan Am S…
Lokasi Pengunjung: 18.218.63.38