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ENTERPRISE RISK MANAGEMENT - Coggle Diagram
ENTERPRISE RISK MANAGEMENT
Definition
Applied across the enterprise, at every level and unit and includes taking an entity-level portfolio view of risk
Designed to identify potential events that will affect entity and manage risk within risk appetite
Applied in strategy setting
Able to provide reasonable assurance to an entity's management and board of directors
Effected by people at every level of an organization
Geared to achievement of objectives in ore or more seperate but overlapping categories
A process ongoing and flowing through an entity
What is ERM
Identify and manage multiple and cross-enterprise risks
Seizing opportunities
Reducing operational surprises and losses
Enhancing risk response decisions
Improving deployment of capital
Aligning risk appetite and strategy
Components
Risk assessment
Risk response
Event identification
Information and communication
Objective setting
Monitoring
Internal environment
Control activities
Objectives
Operations - effective use of resources
Reporting - reliability
Strategic - high level goals, aligned with mission
Compliance - applicable laws and regulations