Week 15 Discussion - ERM and Various Disciplines

Mahankali 

Week 15 - Discussion

COLLAPSE

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Week 15 – Discussion

ERM at Learner Centered Teaching & Strategic Risk Management:

Learner Centered Teaching (LCT) is based on learning research that summons more active, inductive instruction. It is extremely interesting to see students strongly arguing for the most important step in an ERM process even when there may not actually be a hierarchy, Increased student engagement strengthened team-based skills, personalized student guidance, focused classroom discussion, and faculty freedom are several benefits of the growing LCT adoption.

Managing Financial Risk assessment is a major point that TL approach gives an example of the trade-offs, costs, and benefits of hedging with futures contracts often starting with a simple natural hedge. Here, the student records the respective payoffs to long and short positions when prices change. Students memorize the transactions and expect to replicate the steps with different numbers, and maybe even a different futures contract for a challenging TL course.

ERM is a business management support process for several years and proponents of ERM have been advocating incorporating the ERM process into strategic and business planning to increase its utility. The specific purpose is to reduce the impact of adverse events and be ready to exploit emerging opportunities and adapting the ERM process within the existing strategic and business planning methodology. Organizations that view the ERM process as supporting business strategies should consider positioning it where the primary goals are both to grow the business and to protect value: corporate planning and the business units can be utilized to incorporate ERM into the strategic and annual business planning process with three internal scan elements -

· Surveying the C-Suite on risk managements

· Effectiveness of risk controls & security audit

· Creating ERM Risk register

The surveys will enable a comparison between the current state of risk management activities and the corresponding risk control efforts and ERM risk register is a tool for organizing the identified risks and their internal owners. 

References:

· Fraser, J., Simkins, B., & Narvaez, K. (2014). Implementing enterprise risk management: Case studies and best practices. John Wiley & Sons.

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