Risk Management (ERM) Framework

Enterprise Risk Management (ERM) Framework
As mentioned in Chapter 1, the general ERM framework has been around
for many years, emanating from the finance and classical risk insurance
disciplines. We’ll take a high-level view at ERM first, and then dig deeper
with profiles from CAS, the Casualty Actuarial Society. Recall that
Chapter 1 provided one perspective of ERM. A second perspective is from
CAS, which has 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 shortand long-term value to its shareholders.
ERM can also be described as a risk-based approach to managing an
enterprise, integrating concepts of strategic planning, operations management, and internal control. ERM is still evolving to address the needs
of various stakeholders who want to understand the broad spectrum of
risks facing complex organizations and their supply chains to ensure they
are appropriately managed. Government regulators and debt-rating agencies have increased their scrutiny of the risk management processes of
many companies.
Schlegel, Gregory L., and Robert J. Trent. Supply Chain Risk Management : An Emerging Discipline, Taylor & Francis Group,
2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/apus/detail.action?docID=1680353.
Created from apus on 2021-01-02 23:04:42. Copyright © 2014. Taylor & Francis Group. All rights reserved.
Emerging Risk Management Frameworks for Success  •  167
COSO ERM Framework
An important perspective about risk is put forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO), a wellknown group formed to help businesses develop their internal control
systems. Thousands of organizations have incorporated COSO’s Internal
Control Integrated Framework to help manage their activities. In 2001, in
response to a heightened awareness of global risk, COSO partnered with
PriceWaterhouseCoopers to develop a framework that would enable organizations to evaluate and improve enterprise risk management. COSO
defines ERM as follows:
A process, effected by an entity’s board of directors, management and other
personnel, applied in a 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.3
Eight interrelated components comprise COSO’s ERM framework.
These components are derived from the way management runs an enterprise and are integrated within the management process. These eight components, which are also relevant to our discussion of SCRM, comprise a
fully developed ERM system:
• Internal Environment. The internal environment sets an organization’s tone, including how risk is viewed and addressed by an organization’s people, including its risk management philosophy, risk
appetite, integrity, and ethical values.
• Objective Setting. Enterprise risk management ensures that
management has a process to set objectives and that the chosen
objectives support the entity’s mission and are consistent with its
risk appetite.
• Event Identification. Internal and external events affecting the
achievement of objectives must be identified, distinguishing between
risks and opportunities. Opportunities are channeled back to management’s strategy or objective-setting processes.
• Risk Assessment. Risks are analyzed in terms of theirlikelihood and
impact. This is used as a basis for determining how to manage risks.
• Risk Response. Management selects various risk responses, including avoiding, accepting, reducing, preventing, or sharing risk. A set

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Quality Custom Writers has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!


Essay Writing Services

At Quality Custom Writers, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.


Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!


Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.


Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.


College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!


Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.

× How can I help you?