DISUSSION-1 RE: Chapter 15: Embedding ERM into Strategic Planning at the City of Edmonton COLLAPSE Top of Form The two strategic processes The two strategic processes which are tightly connected to ERM in the current scenario of Edmonton City ERM implementation are: Results based budgeting and Performance measurement. Results based budgeting (RBB): ERM helps organizations to allocate the resources based on the requirement for completing the tasks and to produce the desired output. The RBB assists to determine the funding allocation requirements which are mandatory to fulfill the strategic objectives of organization. This budget formulation is performed based on predefined objectives such as priority, resource availability and expected results etc. here the expected results represents the desired outputs which organization expects to meet its strategic goals. In simple words the Results-based budgeting is about emphasizing performance and accountability. Performance measurement: The continuous performance measurement helps organizations to drive the progress in risk mitigation and it provides insights where additional attention is required. The Key performance indicators (KPIs) can be used to measure the effectiveness of risk management activities. The Performance measurement in ERM sends the list of desired outcomes to RBB and receives list of prioritized programs and costs to ensure ERM works at its full potential (Fraser, J., Simkins, B. J., & Narvaez, K., 2015). Two criteria’s must be balanced in a successful ERM model The two criteria are model power and user-friendliness. The powerful model can provide large amount of information and lets the organization to compare the results and risks, effectiveness’ of current program and impact of future initiatives. The user friendliness program helps to easily add information, add new features and easy to understand by the user with simple steps. The user friendliness also includes if needed some unnecessary steps could also be removed without losing model robustness (Fraser, J., Simkins, B. J., & Narvaez, K., 2015). Thank you References   Fraser, J., Simkins, B. J., & Narvaez, K. (2015). Implementing enterprise risk management: Case studies and best practices. Hoboken: Wiley. Bottom of Form DISCUSSION-2 1. What the other strategic processes are closely tied to ERM? The strategic processes may have success strategy which is linked to the command of risk and organization understanding. The selection of strategy is an exercise of high-stakes. Approx. 80% of the underperformer may against the industry who have lost their wat over the prior 10 years because of blunder who are strategic and the business and strategy magazine. It may blame on failure on operations errors and the external event or compliance fault. 2. What are three kinds of risks are identified within the city of Edmonton? There may be three risks which may involve avoidance or risk termination, tolerance or acceptance of ...

1. DISUSSION-1
RE: Chapter 15: Embedding ERM into Strategic Planning at the
City of Edmonton
COLLAPSE
Top of Form
The two strategic processes
The two strategic processes which are tightly connected to ERM
in the current scenario of Edmonton City ERM implementation
are:
Results based budgeting and Performance measurement.
Results based budgeting (RBB):
ERM helps organizations to allocate the resources based on the
requirement for completing the tasks and to produce the desired
output. The RBB assists to determine the funding allocation
requirements which are mandatory to fulfill the strategic
objectives of organization. This budget formulation is
performed based on predefined objectives such as priority,
resource availability and expected results etc. here the expected
results represents the desired outputs which organization
expects to meet its strategic goals. In simple words the Results-
based budgeting is about emphasizing performance and
accountability.
Performance measurement:
The continuous performance measurement helps organizations
to drive the progress in risk mitigation and it provides insights
where additional attention is required. The Key performance
indicators (KPIs) can be used to measure the effectiveness of
risk management activities. The Performance measurement in
ERM sends the list of desired outcomes to RBB and receives list
of prioritized programs and costs to ensure ERM works at its
full potential (Fraser, J., Simkins, B. J., & Narvaez, K., 2015).
Two criteria’s must be balanced in a successful ERM model
The two criteria are model power and user-friendliness. The
powerful model can provide large amount of information and

2. lets the organization to compare the results and risks,
effectiveness’ of current program and impact of future
initiatives. The user friendliness program helps to easily add
information, add new features and easy to understand by the
user with simple steps. The user friendliness also includes if
needed some unnecessary steps could also be removed without
losing model robustness (Fraser, J., Simkins, B. J., & Narvaez,
K., 2015).
Thank you
References
Fraser, J., Simkins, B. J., & Narvaez, K. (2015). Implementing
enterprise risk management: Case studies and best practices.
Hoboken: Wiley.
Bottom of Form
DISCUSSION-2
1. What the other strategic processes are closely tied to ERM?
The strategic processes may have success strategy which is
linked to the command of risk and organization understanding.
The selection of strategy is an exercise of high-stakes. Approx.
80% of the underperformer may against the industry who have
lost their wat over the prior 10 years because of blunder who
are strategic and the business and strategy magazine. It may
blame on failure on operations errors and the external event or

3. compliance fault.
2. What are three kinds of risks are identified within the city of
Edmonton?
There may be three risks which may involve avoidance or risk
termination, tolerance or acceptance of risk, the risk-sharing or
transfer via the insurance. Another arrangement or a joint
venture may mitigate or reduce the risk through internal
procedures of control.
3. What two criteria must be balanced in a successful ERM
model?
The term ERM may have associate several people with
something which is too burdensome, unnecessary, and formal
and a big enterprise initiative for the particular organization
which would take on. It is also not limited to the size company
or one industry. The ERM may provide a small and large
organization which shouldn’t be overlooked. The ERM is
imperative as this environment may have unprecedented risk
(Ash, 2017).
References:
Frank Martens Risk through the eyes of strategy, Retrieved
from https://www.pwc.com/gx/en/services/advisory/consulting/r
isk/resilience/connecting-risk-and-strategy-in-the-coso-erm-
framework.html
Ash Noah (2017) 6 tips for successful enterprise risk
management, Retrieved from
https://www.bizjournals.com/bizjournals/how-to/growth-
strategies/2017/05/6-tips-for-successful-enterprise-risk-
management.html
DISCUSSION – 3

4. 1.How do Key Risk Indicators help companies identify
emerging risks?
A powerful risk management features chances that an
organizationfaces, however can likewise lessen their effect or
help turn away them inside and out. This is just conceivable in
the event that one can look into the future to perceive what
dangers and openings might be not too far off. Yet, Risk
indicators (KRIs) are measurements that your organization can
use to help foresee patterns that may demonstrate future hazard.
This is what you have to comprehend so as to build up a suite of
significant KRIs for your organization.
2. How do Key Performance Indicators help companies to
manage existing risks?
Key performance indicators are measurements that help the
business center around key information. Nonetheless, what
works for one specialty unit may not work for another. The
measurements that help the business shift by industry,
organization, division, and job. Study picking the privilege
KPIs for your business in our article. To convey the appropriate
measure of supportive information to the ideal individuals,
you'll have to make a culture for KPI checking and
detailing.KRI helps in identifying the below aspects for an
organization.
· Identify current risk exposure and emerging risk trends.
· Highlight control weaknesses and allow for the strengthening
of poor controls.
· Facilitate the risk reporting and escalation process.
· Operational risk management adds value to the firm.
3. If measuring performance is not a component of an ERM
program, what is the effect on the overall quality of the
program?
Firm execution and worth are upgraded by high‐quality controls
that incorporate hazard the board endeavors over the firm,
empowering better oversight of administrators' risk‐taking
conduct and adjusting that conduct to the vital course of the

5. organization. The general nature of the program depends on
finding developing dangers and handling them head on before
they become too huge. Being proactive about approaching
dangers is the greatest factor in ensuring ERM is a proficient
method to oversee dangers. Venture hazard the board (ERM)
goes past security and controls. Despite the fact that it's
unrealistic to create security and controls to address each
danger that an undertaking may look by distinguishing,
surveying, and moderating dangers, it has been appeared to
deliver better business execution.
Refernces:
https://www.logicmanager.com/erm-software/2018/09/05/how-
to-measure-your-enterprise-risk-management-effectiveness/
https://www.workiva.com/blog/operational-risk-key-risk-
indicators-kris
D
Discussion -4
1.How do Key Risk indicators help companies identify
emergency risks?
Key Risk Indicators:
This can be defined as an important tool within risk
management and are used to enhance the monitoring and
mitigation of risks and facilitate risk reporting. KRIs are
measures that enable risk managers to identify potential losses
before they happen. The metrics act as indicators of changes in
the risk profile of a firm.
KRIs play an important role in risk management by predicting
potential high-risk areas and enabling timely action.
KRIs enable firms to:

6. · Identify current risk exposure and emerging risk trends.
· Highlight control weaknesses and allow for the strengthening
of poor controls.
· Facilitate the risk reporting and escalation process.
· Operational risk management adds value to the firm.
Regulatory Expectations:
The choice of each factor needs to be justified as a meaningful
driver of risk and whenever possible, and the factors should be
translatable into quantitative measures that lend themselves to
verification. The sensitivity of a firm’s risk estimates to
changes in the factors and the relative weighting of the various
factors need to be well reasoned. Periodic tracking of KRIs
(monthly, weekly, depends on what the KRI represents). KRIs
should be reported regularly and escalation procedures should
be in place (as part of the KRI framework) to ensure timely
reporting to management and board. Reporting of KRIs to head
of business units by KRI owners. Head of business units then
reports into risk management. Risk management reports to risk
board and when applicable, the full board.
2.How do Key performance indicators help companies to
manage existing risks?
KRIs and KPIs:
KRIs are metrics which evaluate and measure the efficiency of
an organization’s risk management program. By analyzing KRIs
and KPIs in concert, and over an extended period, you will be
able to show actual or probable deviations from a given
standard or goal. An enterprise risk management program
should identify gaps across the organization, it should also
include processes and methodologies that quantify and measure
the value of the ERM program. An incident or risk event in one
area of the business will affect other areas within the business.
If a risk or activity changes, organizations have no way of
knowing if and how the change will impact their metrics. With a
tolerance level, this gap analysis will also serve to identify
emerging risks as they rise out of tolerance, indicating that
current mitigation activities are no longer enough.

7. By tracking these metrics, organizations can more effectively
mitigate existing risks and detect emerging risks long before
they are able to have a detrimental impact on the organization.
3.If measuring performance is not a component of an ERM
program, what is the effect on the overall quality of the
program?
Key elements include the following
1. Process
2. Integration
3. Culture
4. Infrastructure
Risk professionals today are facing an unprecedented level of
scrutiny. Risk managers are not only responsible for protecting
and securing their organizations, they also must provide
evidence that their risk management programs are effective at
managing risk. At the very minimum, risk managers must prove
they are meeting the expectations of not only regulators.
Without meaningful metrics, the value of the company’s ERM
program, or the degree to which previously unidentified risks.
KPIs are metrics which evaluate the components of a business
deemed crucial for its success, revealing how consistently the
company achieves key business objectives.As more process
owners become involved in risk assessments, the more accurate
and forward-looking information is more likely to be collected.
References
Kseniya Strachnyi ( October , 2015 ) Operational Risk : Key
Risk Indicators Retrieved
.https://www.workiva.com/blog/operational-risk-key-risk-
indicators-kris
Steven Minsky (September 2018) , How to measure your
Enterprise Risk management effectiveness Retrieved
https://www.logicmanager.com/erm-software/2018/09/05/how-
to-measure-your-enterprise-risk-management-effectiveness/
Steven Minsky (September 2018) , How to Measure your

8. enterprise Risk Management Effectiveness
https://www.logicmanager.com/erm-software/2018/09/05/how-
to-measure-your-enterprise-risk-management-effectiveness/