Scribd
Upload
293 views12 pages

ERM Presentation

Enterprise Risk Management (ERM) involves identifying, evaluating, and responding to risks and opportunities related to achieving organizational objectives. ERM provides a framework for managing risks across an organization in a holistic manner. The key components of an ERM process include identifying risks, measuring their likelihood and potential impact, assessing strategies to address risks, and monitoring progress. Implementing ERM aims to protect and create value for stakeholders by proactively addressing risks and opportunities.

Uploaded by

Rao Arsalan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
293 views12 pages

ERM Presentation

Enterprise Risk Management (ERM) involves identifying, evaluating, and responding to risks and opportunities related to achieving organizational objectives. ERM provides a framework for managing risks across an organization in a holistic manner. The key components of an ERM process include identifying risks, measuring their likelihood and potential impact, assessing strategies to address risks, and monitoring progress. Implementing ERM aims to protect and create value for stakeholders by proactively addressing risks and opportunities.

Uploaded by

Rao Arsalan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

Enterprise Risk Management

Methods and processes used by organizations to manage risks and opportunities related to the achievement of their objectives.

Presented By:

1. 2. 3. 4. 5.

Arsalan Zulfiqar Mohsin Hanif (CR) M. Faisal Jan Mustansar Shahzad Ishaq Tufail

Contents

1 2 3 4 5 6 7

Introduction What is ERM


Types Types of Risks Risks
Components of ERM pr ocess Goals of ERM

Impact of ERM on cash flow


Conclusion

Enterprise Risk Management

Introduction

Enterprise risk management in business includes the methods and processes used by organizations to manage risk related to obtaining their objectives. ERM provides a set of rules for risk management, which involves identifying particular events or circumstances relevant to the organization's objectives (risks and opportunities), evaluate them in terms of likelihood and level of impact, determining a response strategy, and monitoring progress. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their primary an secondary stakeholders, including owners, employees, customers, managers, and society overall.

Enterprise Risk Management

ERM

"The process by which organizations in all industries assess, control, exploit, finance and monitor risks from all sources for the purpose of increasing the organization's short and long term value to its stakeholders. Casualty Actuarial Society (CAS) Concerned with a broad financial and operating perspective Recognizes interdependencies corporate, financial, and environmental factors Strives to determine and implement an optimal strategy to achieve the primary objective: maximize the value of the firm

Enterprise Risk Management

Types of Risks
Hazard risks Those risks that have traditionally been addressed by insurers, including fire, theft, windstorm, liability, business interruption, pollution, health and pensions. Financial risks Cover potential losses due to changes in financial markets, including interest rates, foreign exchange rates, commodity prices, liquidity risks and credit risk. (e. g. pricing risk, Asset risk, Currency risk, Liquidity risk)

Operational risks
Cover a wide variety of t situations, including customer satisfaction, product development, product failure, trademark protection, corporate leadership, information technology, and management fraud and information risk. (e. g. Customer satisfaction, Product failure, Integrity, Reputational risk)

Strategic risks Include such factors as completion, customer preferences, technological innovation and regulatory or political impediments (e. g. Competition, Social trend, Capital availability)

(e. g. Liability torts, Property damage, Natural catastrophe)

Enterprise Risk Management

Components of ERM
Determine corporate objectives

Risk identification Goal: comprehensiveness e.g. self-assessment

likelihood

Impact

Risk measurement Volatility measures Value at Risk (VaR)

likelihood

size of loss

Enterprise Risk Management

Components of ERM
Assessing the impact Stress or scenario testing Stochastic simulation

Examine and select alternative risk management tools and techniques Traditional risk transfer Natural hedging / diversification Integration of risks

Enterprise Risk Management

Goals of ERM

Ensure business continuity Enhance opportunities for the company to achieve its objectives Create and increase company value Make risk management more cost-efficient Stabilize earnings

Enterprise Risk Management

Impact of ERM on cash flow


Impact of Enterprise Risk Management on Cash Flow Volatility

Likelihood

Cash Flow

Conclusion

The revolutionary idea that defines the boundary between modern times and the past is the mastery of risk - Peter Bernstein, Against the Gods

Enterprise Risk Management

THANK YOU!

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy