Question

Discuss enterprise risk management (ERM) in its most current form and how it has evolved to assess risk management in today's environment.

Answer 1

Enterprise risk management will mean the risk management related to an organisation by identifying and addressing various potential issues which will the exposing the organisation to risk and properly exploiting the risk in order to generate the opportunities for the organisation in order to help in producing the competitive advantage.

Enterprise risk management is highly efficient technique and it has evolved the overall process of risk management in today's environment because it is having a structured technique of following various processes like-

A. Identification of risk

B. Assessment of risk

C. Planning responsive strategies

D. Implementation of mitigation strategies

E. Monitoring the performance.

So, it can be said that it is a structured process in order to analyse the various aspect of risk management and it will be taking up on those risk in order to generate the opportunities which will be helpful for the company in the long run by generation of competitive advantageadvantage.