Implementing enterprise risk management: From methods to applications.

 Implementing enterprise risk management: From methods to applications.

This article elaborates on the motives that makes one undertake certain risks in a business and it uses an example of Ferdinand Megallan in October 1517 where he asked for an investment from king of spain, Charles I, worth 8,751,125 silver maravedis. Magellan’s main objective was to find a westerly itinerary to Asia in order to allow circumnavigation of the globe which was an extremely risky undertaking. And as the results were expected, only like eight percent of the entire crew and one ship out of the four that left were able complete the voyage around the world. Even Megallan himself was not able to complete the circumnavigation as he died in Philippines. Therefore, the main question resulting from this incident, is why would one undertake such a huge risk because Megallan stood to gain only if he succeeded. Whether one is taking a loan or driving a vehicle, individuals must evaluate the risk in the same manner, that is by weighing upsides and limiting the downsides. The objective of the book is to offer the methods and tools to assist firms elevate their risk reports

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Segal, S. (2011). Corporate value of enterprise risk management: The next step in business management. Hoboken, N.J: Wiley.

The book contented is subdivided into three key parts, basic enterprise risk management infrastructure, enterprise process cycle and risk governance. The chapter of the first part of the book focuses on the core events that have contributed to the rising popularity of enterprise risk management. And by so doing, it provides a stable background for a clear understanding of traditional enterprise risk management methods as well as the disadvantages. While the second chapter starts by defining risk and EMR in four ways and in terms of the ten key ERM criteria which are fundamental for any ERM programs to determine its level of robustness.  The third chapter discusses the downsides of traditional ERM methods to satisfy the ten principle ERM criteria and the three key challenges to these programs. The book also highlights the steps to risk identification through risk categorization and definition, qualitative risk assessment and emerging risk identification. Other parts of the articles explains risk messaging, risk quantification, and also risk decision making.

Green, P. E. J. (2016). Enterprise risk management: A common framework for the entire organization

The paper discusses the various types of risks that businesses are associated with daily such as financial, cyber, health, supply chain, safety and environmental, strategic as well as political risks. It also provides corporate terminologies and framework that assists firms in managing these risks in order to have an operational ERM system. The framework acts as a background to organization intending to prevent significant risk events, detect risks when occur and be able to respond effectively, quickly, resiliently and appropriately. The article also resolves the the challenge of differing terminology, strategies and techniques within the company and between various risks specialties by exhibiting the major principles corporate to managing all kinds of risks. ERM is perfect for managers and executives across the whole organization by providing an inclusive comprehension they need in daily language, to successfully navigate, navigate and mitigate the complicated risks they encounter in their everyday operations in today’s worldwide market.

Fraser, J. R. S., Narvaez, K., & Simkins, B. J. (2015). Implementing enterprise risk management: Case studies and best practices. Hoboken, N.J: Wiley.

Enterprise risk management is a developing discipline aimed in a complex and improperly-understood subject and therefore, science is advanced best by collecting information from numerous and independent sites. A set of rich observations teaches the field practitioners and scholars as well as offering the background for them to come up with descriptive and normative theories and codified best practices. Invaluable research and services have been done by Fraser, Simkins and Narvaez to develop the science of enterprise risk management by gathering several case studies that elaborate innovate risk management practices in extensive sets of companies around the globe. The book acts as an essential source of data for individuals and organizations interested in the evolving and advancing sector of risk management. Moreover, the article’s case studies on different organizations across the world and topics provides an extensive coverage of new data on enterprise risk management. The case studies used in the article are some of the leading academic and practitioners of enterprise risk management.