Section II Governance Structure: An effective governance structure for ERM Implementation often includes the board of directors,executive management committee, steering committee responsible for ERM, clear authorization and reporting lines. The oversight structure (Exhibit. 1) clarifies the process responsibility issues so that everyone who matters also has a role to play in managing risk. Under ERM Implementation plan, each business unit and function at Whitestone communicates identified risks and associated response strategies to their leadership groups. The governance procedure is implemented both top-down and bottom-up, which is inline with the concept of COSO ERM - an integrated approach to understand the overall business risks within …show more content…
To successfully manage risk, an ERM initiative for company Whitestone must be enterprise wide and viewed as an important and strategic effort. Several executives have significant responsibilities for ERM, including the CEO, CRO, CFO, and chief audit manager, the ERM process works best when all key managers of the organization contribute. The COSO framework states that managers of the organization “support the entity’s risk management philosophy, promote compliance with its risk appetite and manage risks within their spheres of responsibility consistent with risk tolerances.” Therefore, identifying leaders throughout Whitestone and gaining their support is critical to successful ERM implementation. A goal of ERM is to incorporate risk management into the organization’s agenda and decision-making processes. This means that ultimately, every manager is responsible, which can only happen when performance goals are clearly articulated, and the appropriate individuals are held accountable for …show more content…
Support from the board of directors and senior management is needed to get the right focus, resources and attention for ERM. They must decide whether to go forward and, once that decision is made, they must provide unwavering support. The ERM initiative should be integrated with existing management processes and linked to significant issues that are clearly on the senior management agenda. Executive managements will have very little appetite for an appendage or overlay. Although it is not the job of the directors to manage the ERM activities, directors do need to demonstrate clear support for the ERM initiative as well as oversee what management has designed and implemented to manage top risk exposures. The top risk for company Whitestone is compliance risk. Therefore, ERM must be understood and embraced by its personnel, and driven from the top down through clear and consistent communication and messaging from the board and senior management. It is the board’s responsibility to ensure that management is devoting the right attention and resources to ERM and is setting the right tone for ERM. What’s more, the board should be comfortable that management has put in place an effective ERM leader who is widely respected across the organization and who has accepted responsibility for overall ERM
In recent years, many organizations particularly in a high risk industry have experienced significant losses. For this reason, they have been more considered the importance of the concept 'High Reliability Organization' (HROs). Weick and Sutcliffe (2001) as cited in Takagi and Nakanishi (2006), claim that a comprehending of the HRO concept can lead to clearly understand a technical system within an organization. This leads to minimize any failures from unexpected circumstances. To be more precise, it can be said that the HRO principle assists the organization to determine the risk factors that may negatively affect a company performance in an early stage of a project life cycle. Similarly, Laporte and Consolini (1991) as cited in Aase and Tjensvoll (n.d.) state that any high risk organizations who has applied the HROs principles tend to have an outstanding safety records.
Robbins, S. P., Decenzo, D. A., & Coulter. M. (2013). Fundamentals of Management (8th ed.). Upper Saddle River, NJ: Pearson.
With the partial electronic medical record system, budgeting for full EMR integration is a key priority that will allow Creekside to capture the necessary quality metrics mandated by CMS, as well as support higher quality outcomes for patients. Assigning the appropriate amount of resources to manage capital budget projects, as well as maintaining flexibility through the capital budget process will ensure success (Vianueva, 2011). By appointing project managers in charge of capital project implementations to act as liaisons with key stakeholders and using dashboards to track changes on a capital project timeline, the success of the project is sustained adding to operational and capital budgeting efficiency (Vianueva, 2011).
This organization in Miami, Florida conducts research to the biotech industry. The upcoming clinical pharmacological testing in a patient with diseases accelerates the needed of the EMR system in this research facility. Some financial issues, inadequate technical support, and government requirements are organizational barriers, which affect the implementation of these changes. Individual’s barriers affect the implementation of the EMR system as well as the required training from staff, resistance to change, and loss of status quo from employees. The EMR implementation has to lead to improve patient safety, and reduction in medical errors. The competitive external environment demands in this organization the implementation of this system. For the readiness in this process, the organization could develop objectives, policies and conduct a several workshops to build consensus for the key deliverables. The Kurt Lewin’s theoretical models apply to implementation to these changes, external forces driven to executives and employees to identify the needed of changes, and the implementation of this system (Spector, 2010). Internal sources as well as human source, leadership, and the experience from employees guarantees the implementation of this system. External fa...
Rather, it is centered around comprehension the key risks an organization confronts then going for broke at the best time in the wake of utilizing the most suitable safety measures (Valderrey, 2016). Even in the best of times, in the event that you are to oversee risk successfully, you should make to a great degree decision making ability calls including information and measurements, have an unmistakable feeling of how all the moving parts cooperate, and convey that well. In the most noticeably awful of times, risk management can go into disrepair. Recorded models can come up short, liquidity can become scarce, and relationships can get to be more grounded all of a
After reading throughout all the varying leadership styles, I quickly determined that I am much more of a participative leader. I value input from my colleagues and those around me before I make any decision. I want everyone I work with to feel like they had a part to play in whatever project we are tackling. I am a firm believer in the belief that communication is crucial and critical to any type of success. I believe that by taking everyone’s thoughts, and contributions into effect it increases productivity as well as participation. When someone feels like they are an integral part of the decision making process and they feel relevant, their level of commitment increases substantially, in my opinion.
There is always a risk that associated in its business operation and the safety and health of its people is always at risk. That is why business firms like downers have risk management group that is outlined in their area of operation. The work of risk management is to assess the hazards and risk that are potentially present in the field that can cause harm to its people and business itself. By applying the SHREQ and ARM approach to the identified risk. The company established safety/cardinal rules to their work area to safeguard their people to hazards and mitigate the occurrence of the risk. This cardinal rules can be viewed at this site
Hierarchical structure of organisation is the tradition form of organising a business. This can be best displayed in a shape of a pyramid, with the owner, CEO or Board of Directors at the top. This top level of management is concerned with planning organising and controlling. They are usually required to develop long and short term strategic plans to achieve the business objectives. They are also responsible for any change to the business such as a change in the Prime Function or introduction of a new product line. The second stage is the Middle Management which coordinates the activities of supervisors. It prepares policies and plans, and has the responsibility for its budgets and for appointing new employees. At the third level of the structure are the supervisors which have the power of concurrent control. They are the link between workers and the top level of management. They are chosen for their technical skills and ability to motivate others.
"Business officers wear many hats. The most important is that of the guardian of the institution's assets. Risk management in all forms - identifying, reducing, controlling, and transferring risk - is an invaluable tool for safeguarding those assets" (Abraham, 1999, p. 89). In order to effectively address risk management, a CBO must identify risk, develop a plan to reduce risk, transfer risk, and report on the cost of risk management. Abraham (1999) identifies five categories of risk: physical, casualty, fiscal, business, and reputational.
Governance mechanism: governance on the enterprise architecture is crucial for this organization. Because by following sequence procedures we can achieve our goals and vision, so in my chosen organization the governance must be maintained in production, nature, sales and capacity
Enterprise Resource Planning (ERP) -. Abstract ERP systems are meant to help companies and businesses operate more efficiently when they are not. The main goal for a company is to choose a vendor that will give them the safest and easiest way to operate efficiently and achieve their business goals. What is an ERP?
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Some include risks at the enterprise level, managing risks in complex projects and dealing with turnarounds and large capital projects. Liu, Zou, & Gong (2013) explore how enterprise risk management (ERM) may influence the ability and performance of project management risk (PRM) by considering the features of the construction industry, its businesses and projects. Managing risks within projects such as these has become an important process to achieve project objectives in terms of the scope, time and cost. The results show that enterprise risk management can positively influence the implementation of project risk management. This can be achieved through implementing a risk focused culture, setting up risk management departments and setting up risk procedures. This will help control the project risk and improve the performance of project risk management. Communicating the concerns with other team members can help identify the risks earlier on rather than later in the development of the project. If the Stakeholders and managers involved are satisfied then the project outline becomes a
Align and integrating different views of risk management: ERM can provide a common framework to manage different kinds of risk. It can provide WP management and board a clear view of risks management. The clearer the management understand risks, the more stable WP can be.
e risk management process typically includes five steps. These steps are 1) identifying all significant risks, 2) evaluating the potential frequency and severity of losses, 3)developing and selecting methods chosen, 5) monitoring the performance and suitability of the risk management methods and strategies on an ongoing basis.