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Enterprise Risk Management

Enterprise Risk Management is a strategic business discipline that supports the achievement of an organization’s objectives by addressing the full spectrum of its risks and managing the combined impact of those risks as an interrelated Risk portfolio.

Risk management is important in an organization because without it, a firm cannot possibly define its objectives for the future. If a company defines objectives without taking the Risks into consideration, chances are that they will lose direction once any of these Risks hit home. An organization must manage their Risks in order to be able to achieve its major targets.

Managing Risks or learning how to manage Risks should start with the senior management team so that they are in position to train their staff because it is useless to train staff without training the top management. When you talk to most of the people that have made it in their business or those that have managed to take their organizations to another level, the only trick they use is being able to manage their Risks.so most people keep asking questions like: How does a company identify its Risks?

For startup businesses and established organizations, the ability to identify which Risks pose a threat to successful operations is a key component of strategic business planning. Business risks are identified using different methods, but each identifying strategy relies on a comprehensive analysis of specific business activities that could present challenges to the company. Under most business models, organizations face preventable, strategic and external threats that can be managed through acceptance, transfer, reduction or elimination. Companies and Organizations should invest highly in creating awareness through training their staff in Enterprise Risk Management so that they acquire knowledge on how to identify and manage Fraud in order for the Company/Organization to achieve its intended.


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