Ten steps to enterprise-wide risk management

Priscilla Burnaby; Susan Hass

doi:10.1108/14720700910998111

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Corporate Governance

ISSN: 1472-0701

Online from: 2001

Subject Area: Business Ethics and Law

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Ten steps to enterprise-wide risk management

Document Information:
Title:	Ten steps to enterprise-wide risk management
Author(s):	Priscilla Burnaby, (Professor at Bentley College, Waltham, Massachusetts, USA), Susan Hass, (Professor at Simmons College, Boston, Massachusetts, USA)
Citation:	Priscilla Burnaby, Susan Hass, (2009) "Ten steps to enterprise-wide risk management", Corporate Governance, Vol. 9 Iss: 5, pp.539 - 550
Keywords:	Control systems, Reports, Risk assessment, Risk management
Article type:	Viewpoint
DOI:	10.1108/14720700910998111 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Acknowledgements:	Received: 29 October 2007 Revised: 19 March 2008 Accepted: 5 June 2008
Abstract:	Purpose – The purpose of this paper is to discuss the objectives of enterprise-wide risk management (ERM), the Committee of Sponsoring Organizations (COSO) ERM Framework, and outline a method to implement ERM in organizations. Design/methodology/approach – This paper delineates ten steps organizations can use to develop a viable ERM system for any organization. Findings – It is highly recommended that a high-level risk officer with visible support from senior and board level executives has a separate function to oversee the development of an ERM department. Practical implications – Although the internal audit department has a large role in evaluation and monitoring the ERM system, it is management's responsibility to develop a strong ERM function that ties corporate strategy, the budget, controls, and the entity's performance measurement systems to risk management. Originality/value – The cost to the entity of implementing and maintaining of an ERM system is grossly out-weighed by the results and knowledge gained in evaluating, assessing, and overseeing risk to insure achievement of strategic objectives over the short- and long-term life of the organization.