Enterprise Risk Management known as (ERM) has evolved considerably since the seventies. From simply 'buying' insurance, it has now grown in importance to become a prime function in many organizations as part of a bigger system known as Governance, Risk, and Compliance (GRC) which starts with corporate governance and ends with compliance. ERM is the function of studying the risks that may hinder a corporation's ability to achieve its goals and then deciding how to overcome those risks. Studies regarding risk management were done by different organizations, including ISO which issued ISO 31000 on risk management. However, the most accepted ERM system is the one designed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). This system, which is the one covered in this course, teaches the steps needed to control risk. It starts with the evaluation of the internal environment and the setting of objectives which are, mainly, a result of the tone at the top of the organization, the directives from corporate governance as well as the vision, mission, and corporate strategies. Then, the course goes through the steps management needs to consider in order to identify and assess risk and decide on proper risk responses and controls. The course ends with how to monitor, communicate, and report risk. In addition, the course looks at risk in different organizational areas such as strategy, reporting, compliance, operations, financial and physical risk as well as risk in different industries.
At the end of this course the participants will be able to:
Identify internal and external changes that will create risks to the organization
Understand the relationship with the board of directors through governance and improve Risk-Based Decision Making (RBDM)
Influence internal controls by choosing the response to the risks identified
Classify risk categories in the organization and identify the right authorities to manage them
Analyze, assess and improve risk management practices within the organization
Managers
Senior managers
Directors
Executives
Financial controllers
Senior Accounting and finance personnel, and auditors.
Risk perception
Why should we care about risk?
Internal environment changes
External environment changes
Introduction to corporate governance
GRC concept: governance, risk, and compliance
GRC system: governance, risks, and controls
Risk management as part of corporate governance
Governance failures
Risk-based decision making
Risk management’s influence on designing internal controls
Risk-based internal audit assessment of risk management performance
ERM and its evolution
ERM evolution
ERM benefits
ERM platform
Strategic approach
Operations and tactics
Business reporting
Compliance and process
Strategic risks
Reporting risks
Financial risks
Physical: life and safety risks
Compliance
Laws and regulations
Financial reporting standards
Operations
External environment: socioeconomic, regulations, technology, and competition
Internal environment: structure, processes, and culture
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