QUESTION 3 Essay Example | Topics and Well Written Essays - 500 words

QUESTION 3 - Essay ExampleCompanies can adapt the principles into their policies, rules, and regulations to farm their performance. Handling these obstacles and balancing the risks with the caller growth and return goals to avoid facing challenges from uncertainty, Enterprise (2004) outlines internal environment, intent setting, event identification, risk assessment, information and communication, risk response, control activities, and monitoring as the eight principal factors warranting attending in that order(1) ERM helps the company to prevent risk by creating a good environment at heart the firm. The risk go forth be identified by including risk management philosophy, risk appetite, integrity and will be monitored by the firms people. (2) Management should set up the objectives before identifying the risk to delay that it aligns with the companys mission and risk appetite is appropriately factored in. (3) A company should identify two internal and external events that ha ve an impact on its success and distinguish between risks and opportunities. (4) A company can deal with and respond to the risks effectively by setting up and implementing policies and procedures. (5) The company should identify, capture, and communicate the applicable information across the organization in a suitable format and timeframe so that its workforce has thoroughgoing clarity and are accountable to their duties. (6) Management can decide a set of actions to respond to risks by avoiding, accepting, reducing, or sharing risk along the companys risk tolerances guideline and risk appetite. (7) In order to manage the risks, the company should analyze the likelihood and impact of them and evaluate on an inherent and a residual basis. (8) Dynamically monitoring the whole process of activities by independent evaluations, and modifying some points when necessary represents the supreme flexibility of ERM, rendering it complete and effective.While abiding by