University ERM Report: Analysis of Enterprise Risk Management

This report provides an analysis of Enterprise Risk Management (ERM), exploring its importance in today's business environment. The paper begins with an introduction that highlights the challenges organizations face from market competition and the need for effective risk management. A thesis statement is presented, emphasizing ERM's role in mitigating risks and capitalizing on opportunities. The analysis delves into various ERM techniques, such as scenario analysis and SWOT analysis, used for identifying risks. It discusses the basic requirements of a successful ERM system, including escalating risks effectively and fostering meaningful risk conversations to enhance decision-making. The report also emphasizes the proactive nature of ERM and its role in helping organizations achieve their strategic objectives. Finally, the paper concludes by summarizing the benefits of ERM, including its ability to standardize risk management procedures, reduce losses, and enhance business opportunities. The report references several scholarly sources to support its arguments, including the works of Carroll (2016), Soltanizadeh et al. (2014), Bromiley et al. (2015), and Ping & Muthuveloo (2015).

Running head: Enterprise risk management
Enterprise risk management
Name of Student
Name of the University
Author note

1ENTERPRISE RISK MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Thesis statement.........................................................................................................................2
Analysis of Enterprise risk management....................................................................................2
Conclusion..................................................................................................................................3
Reference....................................................................................................................................4

2ENTERPRISE RISK MANAGEMENT
Introduction
The economic scenario of the current century explains that the business models of the
organization is constantly facing challenges by the existing competitors in the market
competitors, which could turned out to be creating substantial risk for the organization
(Carroll, 2016). Enterprise risk management (ERM) applies a broad perspective in identifying
and analysing the risks that might create hindrance in meeting the organization’s
perspectives.
Thesis statement
ERM deals with all the risks that might affect the organizational progress. The main
purpose of this paper is to explain how ERM efficiently empowers the organizations to avoid
the loss and capitalize the ongoing opportunity.
Analysis of Enterprise risk management
It is vital for all organisations, to understand all the risks that are associated with the
fact of seeking achievement and attain the expected level of reward. Therefore, in order to
identify the risks, enterprise risk management is considered as one important approach
(Soltanizadeh et al., 2014). The risk identification by the ERM process can be done by using
several techniques, for example, scenario analysis, brainstorming, facilitated workshop, risk
survey, self-assessment, SWOT analysis and many more (Bromiley et al., 2015). A
successful ERM process has some basic requirements. It is important for the ERM system to
escalate the correct risks to the actual people in a well-scheduled and timely manner, and as
an end result, driving meaningful risk conversations can be happened to enhance the
decision-making. When the particular system is performing correctly, it hikes the resource
efficiency; in addition to that it enhances the effectiveness of core risk management of the

3ENTERPRISE RISK MANAGEMENT
organization, by decreasing the impact of different verity of crisis events, which in other way
maintains the firm reputation.
Furthermore, for achieving competitive success and sustainability, it is necessary to
enhance the risk taking capability so that it will be beneficial in chasing the appropriate
opportunities. With robust ERM, the identification and analysis of the potential risks of the
business can be well-shaped. Enterprise Risk Management emphasizes on the necessity of
being proactive rather than reactive. However, efficient ERM shapes an organization’s desire
to achieve its vision. All the above discussed ERM techniques are beneficial in identifying
and managing the risks that might bind the company’s ability to achieve its strategic
objectives. A graceful risk management system undertakes the proportionate activity for
measuring the risk present in a particular organizational project. Once the risk gets identified,
prominent business tactics can be made to achieve success over it. This process is
advantageous in reducing the failure and loss of the organizational project and also enhances
the business opportunities. In addition to that, it is much helpful in eliminate the redundancy
by creating consistent methods of evaluating risk and ensuring that the organization is
utilizing the appropriate amount of energy in risk management (Ping, & Muthuveloo, 2015).
Conclusion
Therefore, from the above it can be understood that in order to avoid the loss and
enhance the business opportunity. ERM institutionalizes the risk management procedures in
different organization by standardizing different methodology and tools, for monitoring the
individual project risks. Different ERM techniques are advantageous in identifying and
managing the project risk by increasing the opportunity.

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Reference
Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk
management: Review, critique, and research directions. Long range planning, 48(4),
265-276.
Carroll, R. (2016). Identifying risks in the realm of enterprise risk management. Journal of
Healthcare Risk Management, 35(3), 24-30.
Ping, T. A., & Muthuveloo, R. (2015). The impact of enterprise risk management on firm
performance: Evidence from Malaysia. Asian Social Science, 11(22), 149.
Soltanizadeh, S., Rasid, S. Z. A., Golshan, N., Quoquab, F., & Basiruddin, R. (2014).
Enterprise risk management practices among Malaysian firms. Procedia-Social and
Behavioral Sciences, 164, 332-337.