ERM Enterprise Risk Management
To determine whether a specific company or business is efficient and effective in its management, the internal audit controls evaluate the enterprise risk management or ERM.
In every organization, there's someone or a team of people who will ensure that this ERM is successful for this is part of the operations management. To manage unexpected events will provide an assurance to every member of the organization.
For the newer organizations, they could access commercial software that discuss risk management or ERM if they've not installed one yet in their organization but older organizations are expected to have their fully developed schemes in handling the needs of their organization.
Some of the roles that the ERM teams should work on include the assurance that any perceived or potential risks are assessed correctly, that the approach to correct the possible risk is meant to be effective, that the process to meet the risks are done correctly, that the risks are not only assessed by are reported to the key management teams and that any method used to fulfill the risks could be evaluated for better future management techniques..
ERM is not there to simply reconcile possible organizational risks nor is there to impose means that will not even be adaptable to an organization. The ERM is expected to provide the board and management team the right risk management approach and if ever the approach is questionable, the board and management staff must manage to provide the best solutions. The teams responsible for the ERM should not have the authority to implement any responses of methodologies that will address the risk on behalf of the board and management, but are instead directed by the higher authorities so they are not held accountable.
ERM is aimed toward working for the business company including their current and potential customers. However, the risk management methods used must be those that are considered legal.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Enterprise Risk Management (ERM) and vendor management software. Supernal’s software for risk management helps banks achieve regulatory compliance services and much more. For further details on erm enterprise risk management please visit our website.