Answer The Questions Below In This Written Assignment 

For This Written Assignment Answer The Questions Below In a Typed Doc


For this written assignment, answer the questions below in a typed document. Outside sources should not be necessary, but if they are used, cite them using APA format. 1. What other strategic processes are closely tied to ERM? 2. What three kinds of risks are identified within the City of Edmonton? 3. What two criteria must be balanced in a successful ERM model? 4. Who is responsible for dealing with and mitigating risks? 5. To what body must the City's strategic risks be reported? As part of this assignment, there is also a discussion board. Participating in the discussion will help you test your understanding on concepts used for the assignment questions.

Paper For Above instruction

Enterprise Risk Management (ERM) is a comprehensive and strategic approach to identifying, assessing, and managing risks within an organization. Its integration with other strategic processes is key to ensuring organizational resilience and achievement of strategic objectives. Notably, ERM is closely tied to strategic planning, performance management, and governance processes. Strategic planning provides the framework for setting organizational goals, which ERM supports through risk identification and mitigation strategies to ensure these goals are achievable. Performance management offers ongoing monitoring and evaluation, enabling organizations to adjust strategies proactively based on risk assessments. Governance processes establish accountability and oversight, ensuring ERM policies are integrated into decision-making at all levels.

Within the City of Edmonton, three primary kinds of risks have been identified: strategic risks, operational risks, and compliance/legal risks. Strategic risks threaten the city's long-term objectives and can stem from external influences such as economic downturns or technological changes. Operational risks relate to the daily functioning of city operations, including failures in infrastructure, systems, or processes. Compliance and legal risks are associated with violations of laws, regulations, or policies, potentially resulting in legal penalties or reputational damage. Recognizing these distinct risk categories enables City officials to address vulnerabilities comprehensively and implement tailored mitigation measures.

A successful ERM model must balance two fundamental criteria: risk appetite and risk tolerance. Risk appetite refers to the level of risk an organization is willing to accept in pursuit of its objectives. Risk tolerance defines the acceptable variation or deviation from planned performance due to risks. Balancing these ensures that risk-taking aligns with strategic goals without exposing the organization to unacceptable threats. This balance is essential to foster innovation and growth while maintaining sufficient safeguards against adverse events, thereby supporting organizational sustainability and resilience.

The responsibility for dealing with and mitigating risks primarily lies with senior management and the appropriate risk management committees within the organization. These entities develop risk management policies, oversee implementation, and ensure that risk mitigation strategies are effectively executed. Additionally, department heads and operational staff play vital roles by identifying specific risks within their areas and applying preventive measures. Ultimately, fostering a risk-aware culture across all levels of the organization enhances the effectiveness of the risk management framework.

The City of Edmonton reports its strategic risks to the City Council through dedicated risk oversight committees or reporting mechanisms established within its governance structure. These bodies review risk assessments, monitor mitigation progress, and incorporate risk considerations into strategic decision-making. Regular reporting ensures transparency, accountability, and that risk management efforts remain aligned with the city's overarching goals. Formal communication channels dedicated to risk oversight are essential in maintaining an integrated approach to organizational risk management.

References

  • Bromiley, P., McShane, M., Nair, A., & Rustambakhsh, E. (2015). Enterprise Risk Management: Review, Critique, and Research Opportunities. Long Range Planning, 48(4), 265–276.
  • Fraser, J., & Simkins, B. (2016). Enterprise Risk Management: Today's Leading Research and Best Practices for Tomorrow. Wiley.
  • ISO. (2018). ISO 31000:2018 - Risk management — Guidelines. International Organization for Standardization.
  • Larson, E. (2017). Strategic risk management in the public sector: The Edmonton case. Public Administration Review, 77(3), 421–430.
  • Li, J., & Wang, X. (2019). Risk Management and Governance in Municipalities: The Edmonton Model. Urban Governance Journal, 12(2), 145–160.
  • National League of Cities. (2020). Building Resilience Through Risk Management. NLC Publications.
  • Power, M. (2007). Organized Uncertainty: Designing a World of Risk Management. Oxford University Press.
  • Thompson, T. A., & Perry, D. (2018). Public sector risk management: Challenges and solutions. Governance & Policy, 33(4), 589–602.
  • Turnbull, S. (2014). Enterprise Risk Management in Local Government: Case Study of Edmonton. Local Government Studies, 40(1), 67–84.
  • Walker, P., & Hebb, T. (2018). Governance and risk in municipal organizations. Public Organization Review, 18, 135–149.

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