The Need for ERM
The Need for ERM
For this Assignment, you will analyze the benefits of risk management.
Refer to this week’s readings in Fundamentals of Enterprise Risk Management to answer the following questions with minimum 4 pages:
- According to the text, what are the four reasons that often drive the need to implement ERM? Briefly describe each one.
- Using the brief Jetblue case study in the text, which of the above four reasons should have driven them to improve their approach to risk? Be specific and support your answer.
- Referring to the GM case study, which of the above four reasons did they fail to consider that led them into the situation they now faced? Be specific and support your answer.
- According to the text, ERM has contributed seven factors to better manage risk. Briefly describe each one and how it brings value to the risk management effort.
Hampton, J. J. (2009). Fundamentals of enterprise risk management: How top companies assess risk, manage exposure, and seize opportunity. AMACOM Div American Mgmt Assn.
Kerzner, H. (2015). Project management 2.0: Leveraging tools, distribution collaboration, and metrics for project success. Hoboken, NJ: Wiley.
Note Please read
Element 1: Drivers of ERM
Provide a thorough and detailed description of four reasons that often drive the need to implement ERM. Make sure to provide relevant resources to support the response.
Element 2: Drivers of Risk Management Approach Improvement
Provide a thorough and detailed explanation of how one or more of the drivers of ERM can be applied to improve the approach to risk management. Make sure to provide relevant resources to support the response.
Element 3: Key Risk Management Approach Failure
Provide a thorough and detailed explanation of how failure to consider the drivers of ERM can lead to poor risk management. Make sure to provide relevant resources to support the response.
Element 4: Key ERM Contribution to Improved Risk Management
Provide a thorough and detailed explanation of how each of the seven factors of ERM has contributed to improved risk management and brings value to the risk management effort.Make sure to provide relevant resources to support the response.
Risks and uncertainties are synonymous with business in the modern day competitive business environment. Risks are concerned with probability and the significance of risks can be estimated by performing the cost and benefit of the occurrence. Uncertainty, on the other hand, is concerned with the lack of understanding of the consequences, chances and the cost as well as the benefits of something going wrong. Enterprise risk management (ERM) is therefore………………….
APA 1262 words