The Role of Enterprise Risk Management
Enterprise risk management has, at its core, a simple concept, that is, that a business needs to at least understand all the risks that it is currently facing or is likely to face in the future. Some of these risks, it will be able to measure and manage; whereas others it will need to react to. Let us start with what is perhaps the normal summary of risks and consider how this leads to enterprise risk management. Generally, risks may be analyzed into the following categories:
- Credit risk
- Market risk
- Liquidity risk
- Operational risk
- Strategic risk
- Reputational risk
As soon as you start with any such analysis, you need to ensure that all of the risks that your firm faces are analyzed and classified ...
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