Week 15 Discussion - ERM and Various Disciplines

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Forum: Week 15 Discussion - ERM and Various Disciplines

COLLAPSE

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              Enterprise risk management (ERM) has a broad perspective role in identifying the risks that are prone to causing an organization not to attain the set objectives and strategies. Several organizations in the modern tech world have been all long practicing various parts of enterprise risk management (Bensaada & Taghezout, 2019). There are two broad areas of ERM usage, which usually involves the identification and prioritizing of the risks, either following or fore-sighting of an unexpected disaster (Lundqvist & Vilhelmsson, 2016). The organization identifies a certain risk and focuses on finding the exact roots of the risk, including the driving forces of the dangers. As a result, prioritizing the risk follows to find the effective means of eradicating or reducing the weight of the risk.

            The two processes are significantly similar in that they all involve the strategies and approaches to managing the risks that could become an obstacle to the success of an organization. In the 21st century landscape of the economy, the business model applied by an organization is subject to a wide range of challenges constantly by the impact of the competitors as well as the incidences with risk causing potential (Bensaada & Taghezout, 2019). Consequently, an organization ought to focus on finding the creative ways of continuously reinventing the business models for the sake of sustaining its growth and creating stakeholders' value. Therefore, in this case, I would implement the ERM processes in reinventing the business models as an approach to improving competitive advantages with the help of substantially reduced risks in an organization.

            I think the methodologies in the ERM would not be successful in the future. Even though the very end of the last century, organizations have been treating the huge risks variety in a holistic manner whereby they attempted to elevate the risks management to senior responsibility of management (Lundqvist & Vilhelmsson, 2016). This would be a great challenge considering that the technology is taking another pace, globalization, financial sophistication, among other factors in the global organization framework.

References

Bensaada, I., & Taghezout, N. (2019). An enterprise risk management system for SMEs: innovative design paradigm and risk representation model. Small Enterprise Research, 26(2), 179-206. doi: 10.1080/13215906.2019.1624190

Lundqvist, S., & Vilhelmsson, A. (2016). Enterprise Risk Management and Default Risk: Evidence from the Banking Industry. Journal Of Risk And Insurance, 85(1), 127-157. doi: 10.1111/jori.12151

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