Response to Discussions 1

Author : Venkata Madhu Manaswini Vinnakota 

ERM:

Enterprise risk management also helps monitor the physical security aspects like fire, and other natural calamities or disasters are ignored. But this is opposite in the case of cooperative organizations whose main aim is to increase the organization's gains. The combined organizations focus on improving the profits instead of focusing on society's impact by putting efforts into social life (Ibrahim & Esa, 2017). Because of these factors, these organizations implement Enterprise risk management, which aims at streamlining the production aspect of the organization by diminishing the production charges that lead to an increase in the profits. As Enterprise risk management helps reduce the perils involved in profit and non-profit organizations, the Enterprise risk management strategy plays a crucial role in both cases, i.e., profit and non-profit organizations. The execution of ERM in the entities permits the company's societal facilities and essential facilities to the people.

Enterprise risk management is an extension of traditional risk management and has many changes in various ways. An ERM approach is integrated into the organization's decision of business. Because the effort is the whole enterprise-wide, any departmental or functional autonomy in encouraging continuous tell you and to support the organization's most value-based object (Jankensgård, 2019). It involves managing all risks to affect organizational capability meeting goals regardless of various types of risks that are considered. It is reviewed and will allow the organization the capability to stay focused on multiple areas on survival. It emphasizes on the performance measurement throughout the organization. But make sure whether risk management strategy will assist in achieving the business school like return on investment and return on asset. The specific benefits of an ERM will include maximizing the possible opportunity for growth and minimizing the expected Organisational laws and to increase productivity.

References

Ibrahim, Farah & Esa, Muneera. (2017). A Study on Enterprise Risk Management and organizational performance: Developer's Perspective. International Journal of Civil Engineering and Technology. 8. 184-196.

Jankensgård, Håkan. (2019). A theory of enterprise risk management. Corporate Governance: The international journal of business in society. 10.1108/CG-02-2018-0092.