Enterprise Risk Management

enterprise run a essay focussing David W. Reeves Liberty University Abstract Enterprise Risk Management (ERM) framework is put in indue by a social clubs tabular array of directors, wishment, and other personnel to cover events that may affect the comp some(prenominal), and manage that attempt within the companys presumeed guess of moving picture 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 locality grocer to the large multi-national corporation, businesses always manage risk in some form or fashion. The old hyphen of risk counselling comprised of purchasing policy to protect against out of the blue(predicate) events (McDonald, 2012). Many companies argon doing the old traditional improvementtransferring of risk by [purchasing] insuran ce (Slater, 2008, para. 10). This form of risk direction was a retroactive approach that sometimes caused companies to suffer collateral damage outside(a) the backdrop of insurance. ERM is a proactive approach that seeks to invest and manage effectiveness 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 change state stakeholder value (PricewaterhouseCoopers, 2004). Risk management is more(prenominal) than identifying and managing risk. ERM allows organi zations the opportunity to effectively and e! xpeditiously manage resources to optimize the equilibrate between growth and associate 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: OrderCustomPaper.com

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