ERM Framework Flashcards
(26 cards)
What is the goal of enterprise risk management?
set culture, capabilities, practices, integrated with strategy setting and performance to create preserve and realize value
What kind of relationship does risk and value have?
Direct
Mission
core purpose of the entity
Vision
aspiration of the entity
Core values
beliefs and ideals about what is ethical or not
Risk appetite
amount and type of risk the organization is willing and able to accept in pursuit of value
ERM Framework
Governance and culture
Objective Setting
Performance
Review and Revision
Ongoing information, communication, and reporting
Defines desired culture
Governance and culture
Develop portfolio view
Performance
substantial changes in market place
Review and revision
assess severity of risk
Performance
exercise board oversight
Governance and culture
prioritize risk
Performance
pursue improvements in ERM
Review and revision
leverage technology to obtain fair, accurate, complete and timely info
Ongoing
internal and external reporting
Ongoing
Implement risk response
Performance
Review risk and performance
Risk and revision
Demonstrates commitment to core values
Governance and culture
Evaluates alternative strategies
Strategy and objective setting
Attracts and develops capable individuals
Governance and culture
Identifies risks and events
Performance
Establishes operating structure
Governance and culture
Formulates business objectives
Strategy and objective setting
