Thursday, May 21, 2020

Enterprise Wide Risk Management Framework And Process Essay

Enterprise-Wide Risk Management In order to effectively treat risk, firms must first apply a risk management framework and process. The enterprise-wide risk management process provides a broad approach to address and manage all of an organizations risk. Furthermore, this technique is comprised of four components, lead and establish accountability, align and integrate, allocate resources, and communicate and report. When implemented together these components are the essential to achieving an organizations goals. Moreover, five risk management steps reinforce the enterprise-wide framework process and begins with scanning the environment, identifying the risks, analyzing the risks, treating the risk and lastly, monitoring the risks to ensure they are being controlled and eliminated (Elliott, 2012). Banks in particular have a variety of risks which can be addressed using enterprise-wide risk management techniques. 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