Enterprise Risk Management in the 21st Century

Today at the starting days of the 21st century, technology we are now living in the 21st and it brings with it enterprises with innovative, complicated technologies and everyone in an entity has some responsibility for enterprise risk management. The underlying premise of and Enterprise Risk Management (ERM) is that every entity exists to provide value for its stakeholders. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity’s objectives. The purpose of risk management is to identify potential pitfalls or problems before they happen so that risk-handling actions may be put into place and enforced accordingly on the course of the product or project to prevent adverse outcome and minimize its effects on the enterprise.
Risk management objectives: Protect employees for hazards resulting to injuries or even deaths; Due attention given to cost of handling risks; Effective utilization of resources; and maintain good relationship with colleagues and the community.

  1. Examine and discuss the benefits of risk management within an enterprise.
Risk management yields benefits to the employees, the project, and stakeholders / enterprise. Benefits are:
            * Improve the identification of opportunities and threats.
            * Encourage proactive management.
            * Improve stakeholder confidence and trust.
            * Minimize losses.
            * Effectively allocate and use resources for risk treatment.
            * Improve operational effectiveness and efficiency.
            * Enhance safety performance and environmental protection.
            * Improve loss prevention and incident management.
            * Improve organizational learning ad resilience.
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  2. Examine and discuss each of the following risk management components explaining how they relate to...