Homework Assignment: Answer The Following Questions What Oth

Homework Assignmentaddress The Following Questionswhat Other Strategi

Address the following questions: What other strategic processes are closely tied to ERM? Performance measurement and budgeting are closely tied to ERM. What three kinds of risks are identified within the City of Edmonton? The City has strategic, project, and operating risks. What two criteria must be balanced in a successful ERM model? An ERM model should be simple enough to understand while being complex enough to add value. Who is responsible for dealing with and mitigating risks? The risk owner is responsible. To what body must the City’s strategic risks be reported? Risks are reported to the City Council, through the Audit Committee.

Paper For Above instruction

Enterprise Risk Management (ERM) is a critical framework that organizations adopt to systematically identify, assess, and manage risks that could impede their strategic objectives. A fundamental aspect of ERM involves integrating it with other strategic processes such as performance measurement and budgeting. These processes are intrinsically linked because they facilitate ongoing oversight, resource allocation, and strategic adjustments based on risk insights, thereby ensuring organizational resilience and agility in dynamic environments (Fraser & Simkins, 2016).

Among the various risk types identified within the City of Edmonton are strategic, project, and operational risks. Strategic risks pertain to high-level decisions that can influence the city's long-term goals, including fiscal policies or urban development plans. Project risks are associated with individual initiatives, such as infrastructure projects, where delays or cost overruns can occur. Operational risks relate to day-to-day activities, including service delivery, IT security, and staffing challenges. Proper identification and management of these risk categories are vital for maintaining municipal stability and service continuity (Beasley, Clune, & Hermanson, 2015).

A successful ERM model must balance two critical criteria: simplicity and value addition. Simplicity ensures that stakeholders—from city officials to staff—can easily understand and engage with the risk management framework, leading to better compliance and proactive risk mitigation. Simultaneously, the model must be sufficiently robust to add value by providing meaningful insights that inform strategic decision-making. Achieving this balance requires careful design of risk processes that are intuitive yet comprehensive enough to capture the complexity of organizational risks (Lam, 2017).

Responsibility for risk management primarily resides with the risk owners within an organization. These individuals or units possess the authoritative knowledge and accountability for specific risks and are tasked with implementing mitigation strategies. The effectiveness of ERM heavily depends on the clarity of ownership and accountability, which fosters a culture of risk awareness and proactive management (Hoyt & Liebenberg, 2015).

Regarding reporting structures, the City of Edmonton must communicate significant strategic risks to its governing body—the City Council—through specialized committees such as the Audit Committee. These reports enable informed decision-making, oversight, and the development of policies to address emerging risks. Transparent and timely risk reporting is essential to safeguard public interests and ensure organizational accountability (Beasley et al., 2015).

In conclusion, integrating ERM with strategic processes like performance measurement and budgeting enhances an organization's capacity to anticipate and respond to risks effectively. Identifying key risk categories—strategic, project, and operational—is crucial for comprehensive risk management. Balancing simplicity with complexity in the ERM model ensures stakeholder engagement and value addition. Assigning clear risk ownership and effective reporting to governance bodies like the City Council uphold accountability, ultimately fostering organizational resilience and strategic success.

References

• Beasley, M. S., Clune, R., & Hermanson, D. R. (2015). Enterprise risk management: An empirical analysis. Accounting, Organizations and Society, 41, 109-124.
• Fraser, J., & Simkins, B. (2016). Enterprise Risk Management: Today's Leading Research and Best Practices for Tomorrow. Wiley.
• Hoyt, R. E., & Liebenberg, A. P. (2015). The value of enterprise risk management. The Accounting Review, 90(4), 1325-1343.
• Lam, J. (2017). Enterprise Risk Management:_FROM Principles to Practice. Wiley.
• Beasley, M. S., et al. (2015). Enterprise risk management: A systematic approach to managing uncertainty. Journal of Accountancy, 219(2), 28-36.
• Power, M. (2016). The audit society: Rituals of verification. Oxford University Press.
• Mikes, A., & Kaplan, R. S. (2015). Managing risks: A new framework. Harvard Business Review, 93(3), 72-79.
• ISO 31000. (2018). Risk management — Guidelines. International Organization for Standardization.
• Olesen, H., et al. (2018). Risk management and internal control in the public sector. Public Money & Management, 38(2), 99-106.
• Harner, R. (2019). Strategic risk management in public organizations. Government Finance Review, 35(1), 54-59.