Please enable JavaScript.
Coggle requires JavaScript to display documents.
Enterprise Risk Management - Coggle Diagram
Enterprise Risk Management
Enterprise risk management enables management to effectively deal with uncertainty and
associated risk and opportunity, enhancing the capacity to build value.
Reducing operational surprises and losses
Identifying and managing multiple and cross-enterprise risks
Enhancing risk response decisions
Seizing opportunities
Aligning risk appetite and strategy
Improving deployment of capital
Fundamental concepts of Enterprise Risk Management
Applied across the enterprise, at every level and unit, and includes taking an entitylevel portfolio view of risk
Designed to identify potential events that, if they occur, will affect the entity and to
manage risk within its 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 one or more separate but overlapping
categories
A process, ongoing and flowing through an entity
Enterprise risk management framework is geared to achieving an entity's objectives which are mainly
Operations – effective and efficient use of its resources
Reporting – reliability of reporting
Strategic – high-level goals, aligned with and supporting its mission
Compliance – compliance with applicable laws and regulations
Components of Enterprise Risk Management
Risk Assessment
Risk Response
Event Identification
Control Activities
Objective Setting
Information and Communication
Internal Environment
Monitoring
Users of this report
Senior Management
Other Entity Personnel
Board of Directors
Regulators
Professional Organizations
Educators