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Implementing enterprise risk management for small or large-scale enterprises depends upon risk mitigation and planning and differs for companies. Also, it’s up to the leadership or risk management teams to adapt to current strategic risk management planning. The ERM is a customization tool that incorporates the corporate culture, objectives, tags, and business units to find and mitigate the risks for the entity as a whole (Gates, 2006). In the early stages of adopting the ERM plans, the communication among the different technical, administrative and non-technical stakeholders plays a critical role in implementing the ERM into the entity without disrupting the existing strategic plans for risk management and mitigation. Though all the case studies presented in the article provide a similar struggle during the kickstart of ERM implementation, I liked the “Daisy company” approach to integrate both the ERM and strategic planning for risk mitigation. Daisy company adapts the importance of communication and education to all of its employee’s from top-down at a single platform. Risks and strategy planning activities helped the sub-disciplinary committee across each business unit list out the risks that need to be eliminated immediately or in the future. The education provided for implementing the ERM allows the employee to think about how each risk can affect the entity. Also, the adaption of ERM is an ongoing process, as the risk management process. The company has foreseen that adaption of any process, ERM, in particular, is going to be an ongoing process through its business life cycle.

As the risks in every business are rapidly increasing, it is necessary to have enterprise risk management (ERM) to implement across the enterprise to provide an overall view of the risks for the entity as a whole. The importance of ERM for any contemporary organization is to manage the risks and better understanding the immediate risks and threats associated with the business mission goals. The cybersecurity experts identified the enumerated benefits of the enterprise risk management programs to be adopted, including the calculated and uncalculated risks. The ERM helps create a risk-focused culture to manage and mitigate across the organizations, thereby having a standardized reporting for risks. It provides an improved focus and perspective on risks events, creating a value for reporting and analysis and tracking potential changes to the entity’s business units (Juul Andersen, 2011). This way, all the resources were tackling or reporting effectively coordinate regulatory and compliance matters, providing controllers and mitigation efforts.

References:

Gates, S. (2006). Incorporating Strategic Risk into Enterprise Risk Management: A Survey of Current Corporate Practice. Journal of Applied Corporate Finance, 18(4), 81–90. https://doi.org/10.1111/j.1745-6622.2006.00114.x

Juul Andersen, T. (2011). Strategic Risk Management Practice: How to Deal Effectively with Major Corporate Exposures. Strategic Direction, 27(7). https://doi.org/10.1108/sd.2011.05627gae.001