Enterprise Risk and Opportunity Management

Introduction

Enterprise risk and opportunity management (EROM), also known as enterprise risk management (ERM), concerns the means by which organizations apply risk and opportunity considerations in developing their strategic goals and objectives, in implementing them through a portfolio of programs, projects, institutional assets, and activities, and in managing them through internal controls. The overall purpose of EROM is to help reach an optimal balance between minimizing the potential for loss (risk) while maximizing the potential for gain (opportunity).

The principal focus of this book is on the development of an EROM framework and overall approach that serves the interests of organizations that are charged with pioneering the development of new technology and applying it to complex systems (henceforth referred to as “Technical Research, Integration, and Operationalizing enterprises,” or TRIO enterprises). The framework is developed first for nonprofit and government organizations whose interests are specifically in achieving technical gains and performing services in the interest of the public. That framework is then extended to provide an EROM framework for commercial TRIO enterprises that develop and apply technology as a means for achieving their stakeholders' financial goals.

The book discusses the philosophical underpinnings of EROM for TRIO enterprises, the integration of EROM with existing management processes, and the nature of the activities that are performed to ...