Enterprise Risk Management Comprehensive Framework
ERM Comprehensive Framework
- Effective enterprise risk oversight is essential to ensure organizations achieve their strategic objectives. Without effective risk oversight, organizations may find themselves ill-prepared for addressing the challenges of managing a complex, ever-changing risk portfolio.
- The ERM Comprehensive Framework offers an strategic and holistic approach to identify, analyze and manage organization’s risk portfolio.
- ERM Comprehensive Framework requires human interaction, teamwork, cross-functional participation and communication, and everyone from the CEO on down must stay aware of the risks and address them as soon as the perils are identified.
- ERM Comprehensive Framework focuses on
- The approach aligned with the organization's structure and strategy
- Continuous education and improvement by focusing on business performance
- Quantification process to measure risk impact to value
- Coordinated enterprise-wide response to substantial risks
- Sustained approach to create business value
- ERM Comprehensive Framework is a flexible framework, based on PEXA® Conceptual Pattern Framework and can accommodate various risk management approaches suggested by numerous sources.
Implementing Process
- Clarify the organization’s objectives.
- Define risks and assess the current ERM environment.
- Analyze the organization’s ability to handle risks.
- Minimize each risk’s exposure or downside.
- Communication and Continuous Monitoring.