Definition: 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.
a process, ongoing and flowing through entity | Effected by people at every level | Applied in strategy setting | Across enterprise | Designed ti identity potential events | Provide reasonable assurance to management and board | Geared to achievement of objectives