Please make sure to answer in apa format and maker sure to use scholarly sources. The required word count is 2500 words and the required sources is 4. Please make sure the responses are original as the will be a plagiarism scan.
Risk Management Process:
ERM Frameworks, Risk Identification and Tolerance
1.Choose a service or retail business of your choice (not a current or previous employer). Perform a risk identification analysis using no fewer than two tools. Provide the rationale for your decisions in choosing those tools.
2.How might the identified risk exposures impact the organizational strategy and outcomes? Use the organization your chose from Question 1.
Please respond to each student and total word count for each is 150 words. Please use scholarly sources to validate response. Total required sources 2. This is the original question:In your own words, describe the ERM framework used in your organization used to assess and evaluate risk. Does that current framework satisfy the list of ten criteria according to ISO 31000 on pp. 99-100? Why or why not?
Share with your fellow learners how KRIs and KPIs might be used in your organization. Apply concepts from the chapter to explain your understanding of their use.
Student 1 Michelle,
Enterprise Risk Management (ERM) is used in organizations for them to be successful in ensuring they are prepared for issues (Fraser & Simkins, 2010). Organizations can set up how they want it to be constructed, determine how it needs to be implemented and decide on who will be completing the review of the issues.
Apria Healthcare is the organization that I currently work for and they have continued to use and improve the ERM within the organization. After reviewing the 10 principles for risk management, it is clear that my organization has made a great choice in the person that overseas this department (Fraser & Simkins, 2010). They use all the principles to ensure that our organization is a success with customers, employees, leaders, and stakeholders.
Apria has continuous education and learning classes to ensure that we are all familiar and up to date with any issues. They have set for the objectives and provided all employees with the information. There is continuous information about the strategies and audits being performed. They send out the evaluations for these audits and change things as necessary. The human side and culture of the organization is also an important factor and they make sure that they prevent any issues that may arise.
Key risk indicators (KRI) give an organization the opportunity to audit the company to see if there are any places for fraud, mishandling, or other issues that may put it at risk (Fraser & Simkins, 2010). One article discussed issues for a food franchise where some of the franchises closed (Nigrini & Johnson, 2008). However, they could have been avoided if they would have seen the KRI’s compared to other franchises. Apria has a unique team that look for KRI’s and continue to look at each branch and compare issues or find ways to improve the organization altogether.
Key performance indicators (KPI) are indicators that organizations can use to assess if the employees are meeting the expectations (Haber & Schryver, 2019). They are specific tasks that are completed and can be measured by how many is being completed in certain time frames. They can also be evaluated and compared to other employees that are completing the same tasks. Apria sets goals for all employees and can easily measure if they are meeting the expectations of if there are things that need to be changed.
Apria Healthcare is a great organization that continues to move forward in all areas of the business. They are transparent when there are issues or if there are areas that need to be improved upon. Recently we have changed a major part of the organization due to ERM as it was determined that we had some major KRI’s. Once that was addressed it did take many months to evaluate and find a solution. Now that it is currently in progress, we are seeing a dramatic improvement of many different areas.
Student 2 Brittney
Enterprise risk management framework can be defined as the set of components that provide the foundations and organizational arrangements for designing, implementing, monitoring, reviewing, and continually improving risk management (Fraser and Simkins, 2010). ERM framework is imbedded in the organizations strategic policy as well as the organizations operational policy. This framework is utilized in the decision making process. A comprehensive and sustainable ERM framework addresses all the major categories of risk exposure, including environmental, competitive, strategic, financial, regulatory, and operational risk (Tuten, 2018). There are seven components within the enterprise framework process. These seven are as follows: mandate and commitment to the ERM framework, risk management policy, integration of ERM in the organization, risk management process, communications and reporting, accountability, and monitoring, review, and continuous improvement (Fraser and Simkins, 2010). The ERM framework for the company that I work for satisfies the ten criteria’s that are required. Our company ERM framework is tailored on company’s objectives and mission statement. Our company is always looking for ways to better our organization and we always adapt to change.
A Key Risk Indicator (KRI) is an operational or financial variable that provides a reliable basis for estimating the likelihood and the severity of one or more operational risk events (Scandizzo, 2005). In contrast, Key Performance Indicators (KPI) is measures that are focused on performance targets and are based on a wide range of strategic, tactical, and operational objectives (Fraser and Simkins, 2010). Both KRI and KPI can be utilized in an organization because they both can be used as tools to show whether the organization is up against a risk or whether a risk has occurred.