course material

1. (Mt) – I need a response to the discussion in APA format
Unformatted Preview Enterprise Risk Management Enterprise risk management (ERM) is
the procedure of planning, organizing, directing, and managing the functions of a company
to reduce the effects of risk on earnings and capital a company. ERM contains strategic,
operational, and financial risks, in addition to threats related to accidental damages. They
both focus on the risks facing the organizations and the capability to react effectively. The
fundamental elements of both organizations’ ERM are the assessment of significant risks
and the execution of appropriate risk responses (Monahan, 2008). Risk responses contain
acceptance of a risk; termination or avoidance of risk; transfer of risk or sharing through a
joint venture, insurance or different arrangement; and mitigation or reduction of risk by
internal procedures of control or different prevention activities of risk. The University of
California deliberately advanced enterprise risk management to decrease overall risk.
University of California Office of Risk management updates risk plans in an ongoing effort.
Technology is a cornerstone of ERM of the University of California. On the other key factors
of success of enterprise risk management of Mars incorporated is alignment with principles
of Mars, focus on meeting objectives, and flexible and realistic enterprise risk management
of Mars incorporated. Risk governance and risk culture are main components that drive an
effective program of ERM (Fraser & Simkins, 2010). Risk governance is the mixture of
structures and processes executed by the board to inform, guide, control and observe the
activities of the company toward the attainment of its goals. Risk culture is essential to
make enterprise risk management sustainable in a company. It is an overall attitude toward
risk and risk-taking of a company (AICPA, 2018). Risk culture includes, such as clear
responsibilities and roles for recognizing, evaluating and managing risks, ethics and code of
conduct and risk factors incorporated into performance evaluations and incentive plans.
References AICPA. (2018). Enterprise Risk Management: Guidance for Practical
Implementation and Assessment. John Wiley & Sons. Fraser, J., & Simkins, B. (2010).
Enterprise Risk Management: Today’s Leading Research and Best Practices for Tomorrow’s
Executives. John Wiley & Sons. Monahan, G. (2008). Enterprise Risk Management: A
Methodology for Achieving Strategic Objectives. John Wiley & Sons. Hi, ERM is a board
which has a complex concept which will reach into every major areas of the oragnisation
where there will be different types of definition of the ERM has been offered . Where it will
falls in to the three categories . Where the strategic definition which will focus on the results
mofeover it will be expressed on the oragfnizational objective. Aslo there will be functional
definations will explain the the acitivites which will reduce the risk . Another one is the

2. process definition which will focus on the action which is undertaken by the manager to the
manager risk. • • • • So why there is a need for the ERM in the organization? Survival: There
will be a better chance to identify along with the mitigation where also we can treat risks
which will close us down. Stability: There will be reliability along with the predictable
behavior when it is created there will be distributed among the financing as well as the
selling products and their services. Fiduciary responsibility: Here the ERM will help the
board along with the CEO where they will meet their shareholders along with the employee
community as well as the social as well as an ethical responsibility. Ethics: Here the ERM
will help to build good relationships with the other parties who will expect us to observe
the legal as well as the ethical behavior in order to conduct the operations which will affect
the customers as well as the supplier and the regulator. So here the conculsion will be that
the scope of the ERM is board also it is quite important to simplify the risk and also to get it
right in the complex world. References https://www.coso.org/Documents/COSO-WBCSD-
ESGERM-Guidance-Full.pdf https://www.coso.org/Documents/COSO-ERM-Executive-
Summary.pdf https://www.theirm.org/media/886062/ISO3100_doc.pdf Enterprise Risk
Management Enterprise risk management (ERM) is the procedure of planning, organizing,
directing, and managing the functions of a company to reduce the effects of risk on earnings
and capital a company. ERM contains strategic, operational, and financial risks, in addition
to threats related to accidental damages. They both focus on the risks facing the
organizations and the capability to react effectively. The fundamental elements of both
organizations’ ERM are the assessment of significant risks and the execution of appropriate
risk responses (Monahan, 2008). Risk responses contain acceptance of a risk; termination
or avoidance of risk; transfer of risk or sharing through a joint venture, insurance or
different arrangement; and mitigation or reduction of risk by internal procedures of control
or different prevention activities of risk. The University of California deliberately advanced
enterprise risk management to decrease overall risk. University of California Office of Risk
management updates risk plans in an ongoing effort. Technology is a cornerstone of ERM of
the University of California. On the other key factors of success of enterprise risk
management of Mars incorporated is alignment with principles of Mars, focus on meeting
objectives, and flexible and realistic enterprise risk management of Mars incorporated. Risk
governance and risk culture are main components that drive an effective program of ERM
(Fraser & Simkins, 2010). Risk governance is the mixture of structures and processes
executed by the board to inform, guide, control and observe the activities of the company
toward the attainment of its goals. Risk culture is essential to make enterprise risk
management sustainable in a company. It is an overall attitude toward risk and risk-taking
of a company (AICPA, 2018). Risk culture includes, such as clear responsibilities and roles
for recognizing, evaluating and managing risks, ethics and code of conduct and risk factors
incorporated into performance evaluations and incentive plans. References AICPA. (2018).
Enterprise Risk Management: Guidance for Practical Implementation and Assessment. John
Wiley & Sons. Fraser, J., & Simkins, B. (2010). Enterprise Risk Management: Today’s Leading
Research and Best Practices for Tomorrow’s Executives. John Wiley & Sons. Monahan, G.
(2008). Enterprise Risk Management: A Methodology for Achieving Strategic Objectives.
John Wiley & Sons.