Embracing Enterprise Risk Management: Practical Approaches for Getting Started

Many organization’s current risk management practices are uncoordinated and informal, thus creating a need for an understanding of the strategic benefits related to implementing a formal enterprise-wide approach to risk management. COSO released a thought paper developed by the Strategic Risk Management Lab at DePaul University to assist organizations with the intimidating task of implementing an effective risk management process in order to obtain a strategic benefit.  This thought paper, authored by Mark L. Frigo and Richard J. Anderson, provides a useful tool in the implementation process, as it discusses the importance and need for an ERM process in all types of organizations. Additionally, the perceived barriers of starting an ERM process and how to overcome the barriers are a focus of the thought paper. This paper can assist with managing the major challenge of implementing a formal and complete risk management process, even when faced with barriers to achieve effective ERM.

Original Article Source: “Embracing Enterprise Risk Management: Practical Approaches for Getting Started” COSO, Jan. 11, 2011.