Is A True Enterprise Risk Management Strategy Is Top Priority For The Leadership Of The Organization

817 Words Apr 18th, 2016 4 Pages
A true Enterprise Risk Management strategy is top priority for the leadership of the organization. In fact, failure to complete thorough risk assessment could put the organization in a state of emergency should the process be ignored or mismanaged (Fraser & Simkins, 2010). Ultimately, taking risk without weighing losses results in increased liability (Bethel, 2016). Thus, components of risk management include identifying the hazard, measuring the loss, and treating or responding to the event (Bethel, 2016).

In the last exercise, we discussed internal and external considerations of the organization and the impact these risks have moving forward. In an effort to offset identified considerations, it is imperative a strategic risk assessment be conducted to determine the relevancy of each consideration. A strategic risk assessment consists of: conducting a risk assessment of plans; identifying critical risk scenarios; identifying countermeasures or solutions to the scenarios; and establishing a system to monitor the risk profile of the organization (Fraser & Simkins, 2010). Ultimately, the organization is reviewing and estimating the probability of risk within their organization.

Internal considerations are risks that are controllable and should be eliminated or avoided, such as:. unauthorized, illegal, unethical, incorrect, or inappropriate actions committed by the leadership or employees (Kaplan & Mikes, 2012). Types of controllable internal risks within Rutherford…

Related Documents

Little Busters! | Episode 1 | A semmi közepén (Családom és egyéb emberfajták)