According to Committee of Sponsoring Organizations of the Treadway Commission (COSO), enterprise risk management expands on internal control function, providing a more robust and extensive focus on the subject of risk management. Management may use this framework to determine how much risk an entity or organization is prepared to and does accept as it strives to create value.
Managing risk is imperative for successful leadership in today’s business world. Leaders must develop processes like enterprise risk management (ERM) to improve their ability to manage risks effectively. ERM cuts across an organization’s silos to identify and manage a spectrum of risks.
Audit committees (or other board committees) charged with risk oversight are placing demands on management for more information about risk management processes and for up-to-date information about management's assessment of key risk exposures. Learn about the specific roles the internal audit function should and should not assume throughout the ERM process.
Creating Growth Using Opportunity Risk Management Effectively
The reality is that risk and opportunity are two sides of the same coin—and both require attention by those who want to survive and thrive in the current business climate. By knowing how to recognize, manage and innovate around risk, a world of opportunity is available to companies.