Response

The University is currently focusing on two objectives by strengthening oversight top risks and enhancing coordination and integration of ERM activities with decision-making processes at the University. The administering of the ERM by the committee structure at UW would be different but similar in the private industry. Every organization adopts an enterprise risk management program that is in direct coordination with the organization's infrastructure. An ERM program of one organization might not necessarily work for another private industry. The University of Washington can use the ERM program of another organization as a guideline in drafting their ERM program. Every organization needs a Chief Risk Officer to assess and mitigate risks that can negatively affect the organization (Fraser, 2015).

The Chief Risk Officer (CRO) is corporate executives responsible for assessing and mitigating significant competitive, regulatory, and technological threats to an organization's financial earnings.  Organizations have been concerned with business risks that threaten their productivity and profitability (Rouse, 2020). The Chief Risk Officers does not only focuses on risk mitigation but also deal with IT security, insurance, financial auditing, fraud prevention, and other internal corporate investigations. The University of Washington needs the CRO to implement operational risk management and mitigation processes to avoid losses from inadequate or failed procedures. Operational risk management includes business continuity and disaster recovery planning (Rouse, 2020).

The responsibilities of the Chief Risk Officers vary depending on the size of the industry. As information technology becomes integral to business processes, the associated risk from data breaches has increased the responsibilities of the CRO (Muse, 2015). The strategies of information protection and risk assurance effort can become a crucial part of the CRO's job. There is a growing interest in the discipline of enterprise risk management within the industry, and the ERM surveys show that about 37 percent of nonprofit organizations have some sort of ERM program in place (Muse, 2015). The result is even higher for organizations with over $100 million in annual revenues, with 62 percent has a formalized program. Organizations can implement ERM in different ways by adopting a formal ERM framework to enhance consistency and provides tangible benefits. The private industry can adopt two popular ERM frameworks such as the COSO ERM – Integrated Framework and ISO 31000 in their infrastructure (Muse, 2015).

References

Fraser, B. J. (2015).   Implementing Enterprise Risk Management. Case Studies and Best Practices,   KOLB SERIES IN FINANCE, Essential Perspectives, 155-178.

Muse. (2015). Adopting   a new enterprise risk management program. Retrieved from   https://rsmus.com/our-insights/newsletters/muse/adopting-a-new-enterprise-risk-management-program.html.

Rouse, M. (2020). chief   risk officer (CRO) . Retrieved from   https://searchcompliance.techtarget.com/definition/Chief-risk-officer-CRO.