Research Paper
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Concept map on financial market
Enterprise Risk Management in Financial Industry
The Enterprise Risk Management in the financial industry helps the financial organizations to address many business challenges that cause a major impact on the business operations of the organization. ERM plays an important role in providing the various techniques that are helpful in making efficient decisions and also the enhanced management of the risks which actually threaten the strategic objectives of the organizations. Hence it is important to implement the Enterprise Risk Management in the organizations of financial industries. The following concept map shows the ideas that can be incorporated in the Erm plan of a typical financial organization.
I would like to divide the entire ERM plan into various aspects such as decision making, risks management, risk infrastructure, risk appetite, risk policies and governance procedures, and finally monitoring and auditing the enterprise risk management plan. These sub-topics serves as the central concepts of the paper I would work on. All these concepts are interrelated to each other. It is important for the organization to make efficient decision that can impact the products and services of the organization, financial market, business operations, assets, investment and capital of the organizations. These include various risks such as financial risks, operational risks, business risks, strategic risks, technological risks. This set of risks can be addressed in risk management, risk appetite and the risk strategies. This process includes identifying risks, analyzing them, assessing risks, prioritizing risks and identifying the mitigation techniques that helps in reducing or controlling the risks identified in the organization.
In order to achieve this the organization requires risk infrastructure. In includes risk technology and various techniques that helps in achieving the back-office operations. This also includes developing and implementing disaster recovery plan and the business continuity plan. These plan helps the organizations to recover from the disasters such as earthquakes, tsunami, and as well as man-made disasters like cyber-attacks etc. It is followed by determining the risk evaluation techniques, risk metrics and as well as the validation techniques which helps in handing the risks identified in the organization.
After addressing the above-mentioned topics in the paper, I would like to work on the policies and procedures that are necessary for the maintaining the effective ERM in the organization. And it is important for the organization to conduct frequent monitoring and auditing the risks so that it can ensure that everything is at its place. So my paper would concentrate on the monitoring and auditing techniques that can be used financial industry to handle the risk effectively.
Reference
Acharyya, M. (2013). An Empirical Study on Enterprise Risk Management in Insurance. New Frontiers in Enterprise Risk Management,39-55. doi:10.1007/978-3-540-78642-9_4
Dash, W. D., & Olson, D. (2015). Enterprise Risk Management in Finance. 10.1057/9781137466297.
Ibrahim, F., & Esa, M.. (2017). A Study on Enterprise Risk Management And Organizational Performance: Developer's Perspective. International Journal of Civil Engineering and Technology. 8. 184-196
Li, L. S. (2018). A Study on Enterprise Risk Management and Business Performance. Journal of Financial Risk Management, 7, 123-138. https://doi.org/10.4236/jfrm.2018.71008