Types and examples of Enterprise Risk Management

      

Types and examples of Enterprise Risk Management

  

Answers


Faith
-Hazard risk
Liability torts, Property damage, Natural catastrophe
-Financial risk
Pricing risk, Asset risk, Currency risk, Liquidity risk
-Operational risk
Customer satisfaction, Product failure, Integrity, Reputational risk; Internal Poaching; Knowledge drain
Strategic risks
Competition, Social trend, Capital availability The risk management process involves:
1. Establishing Context: This includes an understanding of the current conditions in which the organization operates on an internal, external and risk management context.
2. Identifying Risks: This includes the documentation of the material threats to the organization‘s achievement of its objectives and the representation of areas that the organization may exploit for competitive advantage.
3. Analyzing/Quantifying Risks: This includes the calibration and, if possible, creation of probability distributions of outcomes for each material risk.
4. Integrating Risks: This includes the aggregation of all risk distributions, reflecting correlations and portfolio effects, and the formulation of the results in terms of impact on the organization‘s key performance metrics.
5. Assessing/Prioritizing Risks: This includes the determination of the contribution of each risk to the aggregate risk profile, and appropriate prioritization.
6. Treating/Exploiting Risks: This includes the development of strategies for controlling and exploiting the various risks.
7. Monitoring and Reviewing: This includes the continual measurement and monitoring of the risk environment and the performance of the risk management strategies.
Titany answered the question on October 26, 2021 at 09:41


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