DESCRIPTION
The enterprise risk management framework's structure applies regardless of the size of the institution or how an institution wishes to categorize its risks. The circular depiction of the framework is highly intentional. The individual components (such as coverage or risk appetite) are not meant to be sequential, but rather a dynamic flow in both directions. Additionally, culture is depicted as the center/heart/foundation of this model since, without the right culture, the other components are somewhat irrelevant.
This ERM framework was designed to help management and boards of directors answer these relevant business questions:
What are all the risks to our business strategy and operations (coverage)?
How much risk are we willing to take (risk appetite)?
How do we govern risk-taking (culture, governance, and policies)?
How do we capture the information we need to manage these risks (risk data and infrastructure)?
How do we control the risks (control environment)?
How do we know the size of the various risks (measurement and evaluation)?
What are we doing about these risks (response)?
What possible scenarios could hurt us (stress testing)?
How are various risks interrelated (stress testing)?
For more info, you can reach us at
Also, want about us more you can visit our website at
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Risk Management PowerPoint Slides: Enterprise Risk Management PowerPoint (PPTX) Presentation, Adaptive US Inc.
Risk Management Growth Strategy Consulting Frameworks Supply Chain Analysis Strategy Development KPI Operational Risk Core Competencies Organizational Design Disruption Artificial Intelligence Digital Transformation Market Research Chief Strategy Officer Strategic Thinking Strategic Analysis Maturity Model Strategic Planning Strategy Frameworks Innovation Management Business Framework PowerPoint Diagrams ISO 31000 Vision Statement Small Business Entrepreneurship Workplace Safety
Receive our FREE presentation on Operational Excellence
This 50-slide presentation provides a high-level introduction to the 4 Building Blocks of Operational Excellence. Achieving OpEx requires the implementation of a Business Execution System that integrates these 4 building blocks. |