How do you perform ERM?

How do you perform ERM?

1. Define ERM: ERM is a process of managing risks associated with an organization's activities in order to achieve its objectives.

2. Establish Risk Appetite: Establishing the organization’s risk appetite is the first step in performing ERM. Risk appetite is the amount of risk an organization is willing to take in order to achieve its objectives.

3. Identify Risks: Identifying potential risks is the next step in performing ERM. This can be done by conducting a risk assessment or by using a risk management framework.

4. Analyze Risks: Once the risks have been identified, they must be analyzed in order to determine their impact and likelihood. This will help to prioritize the risks and determine which ones need to be addressed first.

5. Develop Risk Mitigation Strategies: After the risks have been identified and analyzed, risk mitigation strategies must be developed in order to reduce or eliminate the risks. These strategies can include implementing controls, setting up processes, or developing policies.

6. Monitor and Report: The final step in performing ERM is to monitor and report on the effectiveness of the risk mitigation strategies. This will help to ensure that the organization is meeting its risk management objectives.