Discussion - ERM Use Cases

According to Brustbauer, 2016 Enterprise risk management help the company prepare for the uncertainties and disasters that may occur all along. Every business must identify the threats likely to face the business and come up with a contingency plan. Different companies faces different threats and uncertainties and therefore while coming up with the risk management plan one must consider the uniqueness of the enterprise and the likely threats to occur. These differences make the companies and business have different hierarchy of risks that are likely to occur. This paper is going to compare and contrast the enterprise risk management of the united grain growers and Statoil Company. The paper is also going to check on the students threads on the risk management plan.

Considering the two company’s it is evident that the two organizations begins by identifying the risk before looking for ways of mitigating it. This will help the company prepare well and avoid such occurrences. Additionally the two organizations focus on operational and financial risks in their implementations. These are the two important sectors of any organization.  An operational risk of the organization determines day to day running of the enterprise. Failure of the operation department registers total failure of the organization. Occurrence of such a risk is detrimental to the progress of the business. Finances are also a significant ingredient towards the progress of the enterprise. Financial control of the business determines a lot about the business. If the organization loses financial control it’s unable to run its programs. And therefore any business organization must focus on how to eliminate risks associated with financial loss.

This enterprise risk management plan for the two organizations is the best for their progress. I believe that these are the fundamental departments that need full control for the progress of the business. If any enterprise is able to manage these two sectors proficiently, chances of expansion are high.  The two plans captures the two important departments of the organization i.e. operation and the financial sections. The two departments determine the future of any organization and thus any enterprise that is able to control them registers a good progress.