ERM must define the overall risk appetite and communicate it throughout the firm. Objectives must be clearly defined and aligned with the risk appetite. The management must determine strategies to identify risks and opportunities, and strategy setting should be continuous through reassessment. Strategic objectives on operations, reporting, and compliance should be measurable, understood by employees, and supportive of the entity's strategy. The management should regularly monitor achievement of objectives, employee commitment, and customer satisfaction. Monitoring ensures all ERM components continue functioning through ongoing management, separate evaluations, or both.

1. “
”
Setting Objective
ERM must define, for instance, the overall
risk appetite and has to communicate it to
all parts of a firm. Clear objectives must be
defined and communicated throughout the
firm. The rating of a firm has to be aligned
to the risk appetite.
In enterprise
Risk management

2. Strategy Formulation
The management must determine the various possible
strategies to ensure that risks and opportunities are
identified .
The strategy setting process should be continuous which
requires constant reassessment and reformation.

3. Strategy Implementation
The strategic objectives should be included :
i.operations
ii.reporting
iii. compliance related objectives.
It should be measurable and understood by all
employees,should be dynamically adjusted, and has
always been supportive and in line with the strategy of
the entity.

4. Strategy Effectiveness
The management should
regularly monitor the level of
achievement of objectives'
employee commitment and
customer satisfaction.

5. Monitoring
a process that assesses both the presence and functioning of its
components and the quality of their performance over time.
ensures that all components of ERM continue to function at all
levels
 Monitoring can be achieve through
i. ongoing management activities
ii. separate evaluations
iii. both activities.

6. Reference:
Enterprise Risk Management,Maturity-Level Assessment Tool
by Maria Ciorciari, MAS, FRM Dr. Peter Blattner
 Enterprise Risk Management – integrated framework ( Executive
summary , september 2004 )