Optimal Spending on Cybersecurity Measures

4 Enterprise Risk Management Framework

DOI: 10.1201/9781003404354-4

Risk management methodologies stems from the ERM framework. This is defined as an organization’s ability to understand, control and articulate the nature and level of risks taken into account the business strategy, coupled with accountability for organizational risk. One of the main benefits of the ERM framework is an enhanced viewpoint and focus on risk management within the organization.

ERM addresses the following organizational questions:

• Should we pursue this initiative? This aligns with strategy, risk appetite, culture and ethics.
• Can we achieve this initiative? This aligns people, processes, structure and technological capabilities, i.e., operational risk.
• Did we accomplish ...