Enterprise Risk Management

Enterprise Risk focussing
David W. Reeves
Liberty University

Abstract
Enterprise Risk Management (ERM) framework is put in place by a social clubs board of directors, management, and other personnel to cover events that may affect the company, and manage that attempt within the companys presumeed risk of exposure levels to provide reasonable presumption of achievement of company objectives (Gelinas, Dull, and Wheeler, 2012).

Risk and the ERM Framework
Managing risk has always been an alpha aspect of any organization. Risk comes in many dissimilar shapes and sizes. From the local neighborhood grocer to the large multi-national corporation, businesses always manage risk in some form or fashion. The old hyphen of risk management comprised of purchasing insurance to protect against out of the blue(predicate) events (McDonald, 2012). Many companies are doing the old traditional approachâ€"transferring of risk by [purchasing] insurance (Slater, 2008, para. 10). This form of risk management was a retroactive approach that sometimes caused companies to suffer collateral damage outside the scope of insurance. ERM is a proactive approach that seeks to invest and manage potential risk, thus minimizing collateral damage that usually falls outside the scope of insurance.




All entities face misgiving and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value (PricewaterhouseCoopers, 2004). Risk management is more(prenominal) than identifying and managing risk. ERM allows organizations the opportunity to effectively and efficiently manage resources to optimize the equilibrate between growth and related risks (PricewaterhouseCoopers, 2004). The ERM framework issued by the mission of Sponsoring Organizations of the Treadway Commission (COSO) helps managers of organizations identify, assess, and manage risk (Gelinas, et al., 2012, p. 221). This framework is comprised of eight components that leave help companies align risk management with their...If you want to spend a penny a full essay, order it on our website: Orderessay



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