Enterprise Risk and Opportunity Management

Chapter 2Coordination of EROM with Organizational Management Activities

Although the need for EROM in TRIO enterprises may be driven by a need to provide innovative technical solutions to complex problems, it is also desirable, and often necessary, to implement EROM within the current management framework of the organization. This chapter describes the high-level structure of most TRIO enterprises, the interfaces between the principal entities of these enterprises in the areas of strategic planning, implementation, and evaluation, and the manner in which EROM activities interface with these traditional management activities.

2.1 The Executive, Programmatic, and Institutional/Technical Management Functions and Their Interfaces

While the detailed organizational and management structure of individual organizations differs, most TRIO enterprises share common top-level organizational entities, management processes, and activities. Generally, as illustrated in Figure 2.1, a TRIO enterprise may be described as comprising three management organizational levels: (1) an executive level that sets and manages the direction and strategy for the enterprise; (2) a programmatic level that develops and manages the programs and projects that support the strategic plan; and (3) an institutional/technical level that develops and manages the institutional and technical resources that support the programs and projects. Decision making involves robust communication within and among all levels.