Answer The Below Question In APA Format (300 Words) ✓ Solved

Answer The Below Question Apa Format 300 Wordstextbook Info

Answer the below question. APA format. 300 words. Textbook: Beasley, M. S. (2016). What is Enterprise Risk Management? Retrieved from. Question: Integrating ERM with Strategy. Do, H., Railwaywalla, M., & Thayer, J. (2016). Integration of ERM with Strategy (p. 35). Review the approach of each company and provide a summary of the key differences between the three implementations.

Sample Paper For Above instruction

Enterprise Risk Management (ERM) is a strategic approach that organizations adopt to identify, assess, and manage risks proactively to ensure sustainable business operations. The integration of ERM with corporate strategy varies across organizations depending on their culture, industry, and objectives. Do, Railwaywalla, and Thayer (2016) describe three distinct approaches to embedding ERM within corporate strategy, each with unique characteristics that reflect their organizational context and risk management philosophy.

The first approach involves integrating ERM into the core strategic planning process, as exemplified by Company A. This method emphasizes embedding risk assessment at every stage of strategic development, ensuring risks are considered during decision-making. Company A actively incorporates ERM into its strategic agenda, fostering a risk-aware culture that aligns risk mitigation with strategic objectives. The key advantage is the proactive identification of potential threats that could derail strategic initiatives, thus enabling better resource allocation and risk mitigation planning.

The second approach is characterized by establishing a dedicated ERM function that operates parallel to the strategic units, as seen with Company B. This method maintains a centralized risk management department that oversees risk policies and reports directly to top management. While this structure allows for specialized expertise and consistent risk practices across the organization, it may lead to a disconnect between operational and strategic risk considerations. Company B's approach emphasizes compliance and oversight, with less direct integration into strategic decision-making.

The third approach involves embedding ERM within individual business units, promoting a decentralized yet cohesive risk culture. Company C empowers business managers to identify and manage risks specific to their operations while maintaining organizational oversight. This approach fosters agility and local risk responsiveness but may pose challenges in achieving organizational consistency and comprehensive risk visibility. The key difference is the balance between local autonomy in risk management versus centralized oversight seen in the other methods.

In summary, the primary differences between these approaches lie in their structural integration and the level of risk oversight. The first approach tightly couples ERM with strategic planning, the second maintains a centralized risk function distinct from strategy, and the third decentralizes risk management to operational units. Each approach fits different organizational needs and risk cultures, highlighting the importance of aligning ERM frameworks with overall strategic objectives.

References

• Beasley, M. S. (2016). What is Enterprise Risk Management? Retrieved from [source]
• Do, H., Railwaywalla, M., & Thayer, J. (2016). Integration of ERM with Strategy. [Publisher or Journal], p. 35.
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