Why WP Should Apply ERM for Stakeholders Essay

Enterprise Risk Management (ERM) is a series of processes used to identify risk, implement strategies to address risk, and monitor impact on the organization. Indeed, an effective ERM will consist of a corporate profile, which is a record of key risks that would hinder the organization in achieving their key objectives (Fraser & Simkins, 2010). Ideally, the risk profile is created as a tool to communicate with the Board of Directors, but may be used as a means of communication with all levels of management (Bethel, 2016). Typically, there are variations of the risk profile based upon the level of management, such as duration, types of risk, and purpose (Fraser & Simkins, 2010).

Enterprise risk management is a technique used by organizations to manage risks that have the potential to affect the company, both positively and negatively, altering

The Chief Executive Officer is responsible for the development of the budget, goals, objectives, policies, procedures, performance and the strategic plan. The CEO presents this information at the quarterly meeting for review and approval by The Board of Directors. The CEO is also responsible for negotiating and executing all contracts and agreements between Crossroads and the property owners, payers, and referral sources (Policy & Procedures Binder 1, 2013).

The ERM process applies to hazard, operational, financial and strategic risks throughout the community bank. The model involves five steps: scan environment, identify risks, analyze risks, treat risks, and monitor and assure. As CRO, he/she communicates and coordinates the risk management program to all thirty employees, establishing a holistic approach. Using the ERM process, five

The EWF (n.d, p. 4) noted that each organization has a mission that it has to follow. That necessitates the need for protection from problems that can hinder the achievements of the mission. The risks that firms face differ depending on their activities. Risk management requires proper scope, assessment, resource mobilization, and prioritization of the implementation.

Our implementation plan mainly focuses on five risks, which are compliance risk, strategic risk, credit risk, operational risk, and financial risk. The corporation has established risk management committees to assess and manage the corporation’s exposure to the above risks. Then, the committees will prioritize these risks and establish guidelines for risk management processes. After that, it will assign the management of some risks to appropriate operating departments or individuals. The management process and department control activities are monitored by the committee and board of directors. However, each individual within the company has responsibility to identify and report potential risks to their managers.

It is very, very clear that without an ERM program in place to help the organization it would be extremely difficult for that particular healthcare organization to make and follow steps to avoid financial disaster’s, especially in today's uncertain market of healthcare. The traditional risk management in healthcare was used to protect hospitals and doctor's from the high rising rate of medical malpractice and professional liability suits in the 1970-1980’s. ERM is more holistic, meaning it takes much more into account that one issue at a time. This also includes patient safety issues and HIPPA

Enterprise risk management is an approach to assist management to identify and manage uncertainties to obtain positive risk objectives. The ERM framework focuses on the development of a strategy that contains the importance of a risk and internal control

It my recommendation to Bandon Group to implement EPR firs and CRM follows because ERP provides CRM software. Conceptually, ERP covers all the basic business process but CRM systems focus specifically on processes at the customer interface (Schubert, 2010). The current situation at Bandon Group is not limited to customer relationship or the problem of Bandon Group is not limited to lack of sales and marketing data, the billing system, web enabled support system, better invoice or the integration of the software but the company and its process need overall business restructure and re-engineering because that is all about ERP.

According to COSO "support from the board of directors and senior management is need to get the right focus, resources and attention for ERM" The entire corporation from top to bottom must view risk management as a critical and strategic step towards prosperity. And even though it is not the job of the directors to implement or be a part of risk management activities, they demonstrate clear support for ERM measures. It is up to top management to ensure that the resources are available, the focus is clear and the tone is positive and motivating.

For Riordan to adopt COSO Enterprise Risk Management (ERM) practices in a new initiative, they are more likely to have a successful implementation if they have the full support of the board and chief executives. The ERM plan should not only be compatible with existing organizational goals, it must also be integrated into the culture so that risk management can become salient at all levels of the organization. Even though risk management should be spread throughout the culture, the aims of the program should be concise and focus on a small number of the top risks. Two of these risks that should definitely be among the top of the list are compliance and legal liability that might arise from the company's operations. This report will outline some of the key concepts that should be embodied in the new COSO strategy at Riordan.

Commonwealth Bank has become one of biggest bank of Australia; one of the reasons is ERP implementation. The ERP system helps the financial institution to communicate worldwide, talking about its various management department, for them it’s really effective. Such as using customer relation management software it helps in keeping the records of consumers in data warehouse, which can be used at the time when information needed by the bank. For Human resource management it provides 24/7 hours services to customers and also helping employees due to real time processing. Financial resource management, it gives the relevant data of clients like whether this consumer has positive records or not and provides credit on the basis of their history. Manufacturing resource planning, ERP supports the firm to know about happenings during production process. Supply chain management, to select the best suppliers for the cards, the bank needs Enterprise resource planning. However this software got some weaknesses like it may be expensive and chances of security issues are always.

Enterprise risk management, also known as ERM, was introduced in 2004 as a strategy to manage risk within a company to avert future outcomes that can negatively affect the company and/or industry. As the concept, ERM spread it became widely accepted. According to the Embracing ERM, Practical Approaches for Getting Started, many companies thrived from adopting and implementing risk management. It was adopted by many to prevent systematic risk by planning, organizing, and controlling the companies’ activities. The 2013 COSO Enterprise Risk Management – Integrated Framework is not the same as the COSO Internal Control – Integrated Framework. The COSO Internal Control – Integrated

The company can prioritize risks according to their importance. Those risks that can threaten the shareholder value can be assigned a higher rating. At present, the main risk facing Dell Computers is the risk of revenue loss due to increase in competition. Dell was a market leader in their industry. But the competitors have improved their sales and marketing techniques. They also offer competitive pricing. Another risk the company recently faced was the risk of non-compliance with the Sarbanes Oxley Act of 2002. Due to SEC allegations, Dell Inc conducted an internal investigation of their accounting practices. The investigation identified several accounting errors and showed evidence of misconduct. Dell falsely reported some of the earnings to make the company more attractive to investors. It was also clear that the internal control of the company was weak and needed some attention. Due to this issue, the company had to reinstate some of their financial statements from prior years. So the main goal of this program should be to identify the most important risks that can threaten the shareholder investments and take appropriate actions before it gets out of control. Risks can be integrated using ‘Risk Map ', which shows the risk on the basis of frequency and severity (casact, 2003). By prioritizing risks according to their frequency and severity, the company can concentrate on the most important risks and take steps

The key elements of ERM are the policy itself, the strategy, and the plan (Harb, 2008). If Non-Linear Pro had embraced and implemented a successful ERM plan, many of these negative consequences could have been avoided.