Enterprise Risk Management is the title of this chapter. In words that a five year old...

Enterprise Risk Management is the title of this chapter. In words that a five year old could understand, tell the class what this means to financial managers working for a public corporation?

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Enterprise risk management:

Is the risk management that involves managing all the types of risks affecting the ability of the organisation to meet it's goals. The ERM includes managing all the types of risks irrespective of which type of risk being considered.

So, ERM helps in identifying the risks and prepares the organisations for those risks that may interfere with the ability of the organisation to achieve it's goals.

The main motive of the finance manger is to achieve the goals of the organisation. So, ERM helps them in accomplishing the organisational goals while minimizing the impact of risks. ERM and its success determine the financial health and life of the enterprise.

jeff jeffy answered 2 years ago

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