Enterprise Risk Management in Etisalat

Running Head: RISK MANAGEMENT 1
Enterprise Risk Management in Etisalat

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Table of Contents
Introduction..............................................................................................................................................3
Review of the state-of-the-art in Enterprise Risk Management..............................................................3
Introduction to the company, organization or business unit you have chosen to study. This should also
include a narrative on strategy, core business activities, recent financial performance and corporate
view of risk management.........................................................................................................................5
A narrative on how organisations link strategy, core business activities, financial performance and risk
management into a coherent dynamic framework...................................................................................7
Depending on the nature of the organisation, there are a number of factors that should be considered
when designing and planning an ERM initiative. Details of the risk architecture, strategy and
protocols should be recorded in a risk management policy for the organisation....................................8
Suggest risks and possible responses at each level of the organisation...................................................9
Evaluate how the COSO framework can be used to add value to organisational enterprise risk
management...........................................................................................................................................11
A narrative on the difficulties associated with collating and acting upon risk intelligence as a means
for value creation in organisations.........................................................................................................12
Recommendations for improvement to existing project level risk management activities in project
portfolio management to enhance ERM capability...............................................................................13
References..............................................................................................................................................14

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Introduction
The Etisalat Group explores the proactive risk management and its importance in
attaining the strategic objectives. In the internal control function of the group, the Enterprise
Risk Management (ERM) process, it makes sure that the main risk is explored, assessed as
well as managed around the Etisalat Group of companies. ERM framework of Etisalat offers
the right assurance that significant risks are studied and examined (Wu & Olson, 2015).
The Etisalat group hires the robust system of ERM that includes three defence lines
environment of internal control. In the day to day risk management, the first defence line
goes around the OpCos. This is highly governed by the previous procedures and policies, and
it also covers up regular perspective on explored risk as well as ongoing risk mitigation
management activities (Olson & Wu, 2010). The next defence line includes the corporate
functions that continue their accountability for monitoring and oversight of risks. Deducted
tasks like Finance (Revenue assurance and fraud management), legal, regulatory affairs, and
internal control (compliance and ERM) includes different activities to reduce and manage the
massive range of risks. Along with this, capabilities of agreement in the functions of internal
control are set up or emphasizing over the legal compliance issues like corruption and anti-
bribery.
The last line of defence offers the personal assurance about the company’s internal
control environment through conducting an internal audit, along with other functions of
reliability that are outlined in second defence line (Choi, Ye, Zhao & Luo, 2015). Both the
internal audit and internal control functions continue to move independently from the report
functionally and executive management to Etisalat Group Audit committee that is authorized
by the board of directors, to supervise the area.

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Review of the state-of-the-art in Enterprise Risk Management
Enterprise risk management (ERM) holds the holistic approach towards the company
risk. A holistic approach is considered as the risk in the context of the group, gathered
components of risks or either the combination of risks for viewing the individual issue. While
analysing the enterprise risk management through the perspective of practitioners, who can
apply as well as practice any concepts related to management in the actual business world. In
the case of enterprise risk, one is a Casual actuarial society (CAS), as per CAS committee,
ERM is explained as a discipline through which companies in assessing the industry,
exploits, controls, monitors, and finance from every source, with an aim to enhance the
companies both short and long-term stakeholders value (Sun, Apley & Staum, 2011). To
undertake the detailed analysis of enterprise risk management in the context of this study, it is
essential to have an understanding of the critical viewpoints of risk management from
practitioner’s perspective.
The perception of the practitioners provides an ability to analyse the actual time
involved in organization risk management and differentiation in risk management in context
of practical and conceptual application. Therefore, this literature includes the few views of
practitioners over risk management. ERP is the new term that has come up as an ultimate
approach towards managing risk (Ansaripoor, Oliveira & Liret, 2014). This strategy has also
proved by the adequate performance, and the same make the company move from traditional
risk management towards ERP. The other definition of ERM for practitioners is that, it’s a
process through which companies methodically examine the risk related with activities. This
is usually known as enterprise risk management, and its aim is to increase the highest value in
these activities. As per Ho, Wu & Olson (2009), enterprise risk assists in managing the
complete organization activities in an aggregate way, which is different from the traditional
risk problems individually. Besides this, ERM emphasizes risk and mention it as a potential