Enterprise Risk Management Case Study

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With a changing economy external factors have placed an undeniable importance for businesses to implement an Enterprise Risk Management (ERM) program within their organization. The need for ERM is present in almost any business sector, including higher education. An effective ERM program successfully identifies risk that are present internally and externally in regards to the organization. Identification of key risk, prioritizing the risk and implementing strategies will aid in avoiding and mitigating the risk that could have catastrophic implications. Ultimately, a strong ERM program will allow the organization to manage risk successfully by instilling an ongoing process. The importance of enterprise risk management is to ensure that the program is not managed in individual departments, but rather utilizing a holistic approach. According to Fraser & Simkins, in the text, Enterprise Risk Management, the common result of a stove-pipe approach to risk management is that risks are often managed inconsistently these risk may be effectively managed within an individual business unit to acceptable levels, but the risk treatments or lack thereof selected by the manager may unknowingly create or add to risks for other units within the organization. This stove-piping or silos as we understand it at University of Saint Mary create major rifts and…show more content…
In-depth knowledge of the organization’s fundamental operations is required for understanding the implications of the key risks a company is exposed to and then assessing the company’s planned responses to risk (Fraser & Simkins, 2010, pg. 64). Training and orientation can aid in furthering the knowledge of administration. Having a vast understanding of the industry and the regulations that govern the industry will aid in managing risk as well, which can be obtained in part through

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