Enterprise risk management has a clear series of objectives attempting to ensure that the business both knows and can consider the risks that it is facing and those that it might face. Quantification is important to enable progress, in terms of reducing the level of risk faced, to be clearly monitored by and reported to senior management.
There are a series of key building blocks that are included in all risk programs frameworks. These include the following:
- Senior management support
- Risk appetite
- Risk identification
- The risk register
- Control and risk self-assessment
- Key risk indicators
- Risk consistency
- Stress testing and scenario modelling
There will be other elements that could be included within a risk management ...