RISK MANAGEMENT BLOG

Establishing an Enterprise Risk Management (ERM) Framework

The following is a guest blog post is from RiskArticles.com.

Enterprise risk management (ERM) is an ongoing process designed to manage all risks within a firm. The Commission of Sponsoring Organizations of the Treadway Commission (COSO) defines ERM: 

“Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in 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.”

It is important to establish an ERM Framework because it enables a firm to gain a clear view of its overall risk level. Discussed below are the steps that need to be taken to establish an ERM Framework, the potential benefits that can be expected, and the challenges that may be faced.

Topics: Risk Management Process ERM enterprise risk management

The 5 Step Risk Management Process

Implementing a risk management process is vital for any organization. Good risk management doesn’t have to be resource intensive or difficult for organizations to undertake or insurance brokers to provide to their clients. With a little formalization, structure, and a strong understanding of the organization, the risk management process can be rewarding.

Topics: Risk Management Process 5 steps to risk management identifying risk solution to risk frequency and severity of risk

8 Ways to Identify Risks in Your Organization

Even if you don’t realize it, you’re probably employing some kind of risk management in your organization. Over time, you develop procedures to make sure things don’t go wrong and put plans in place to reduce organizational impact if they do.

Creating a risk management plan is simply about formalizing that process and being able to devote your resources more effectively. The first step in this process, and one of the most important, is identifying your risks.

You will need to make a list of all the specific risks that could impact your organization. This can be a daunting task, especially for new businesses that don’t have years of experience and history to rely on. Fortunately, there are some strategies you can turn to for help:

Topics: Risk Management Process identifying risk identifying risks that threaten a company how to identify risk business risk management what are my risks

You've Identified Risks... Now What?

You’ve successfully identified the risks that are facing your organization. (If you’re just joining us, check out our blog post from last week!) But now what? Risk management isn’t just about figuring out what risks there are: you have to know what to do about them and create a thorough plan for staying on top.

Topics: Risk Management Process frequency and severity of risk risk monitoring risk analysis business risk management

The Importance of Risk Mapping

Why should your organization be using risk maps? 

Building a risk map brings valuable benefits. You will have a thorough understanding of your risk environment and how individual risks compare to one another. You can use this to strategically prioritize your risks and determine where to use your limited resources.

A risk map is built by plotting the frequency of a risk on the y-axis of the chart and the severity on the x-axis. Frequency is how likely the risk is or how often you think it will occur; severity is how much of an impact it would have if it did occur.

Topics: Risk Management Process risk mapping Risk Map business risk management

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