A Research On Enterprise Risk Management Essay

1909 Words8 Pages
America’s former president, Theodore Roosevelt, said, “Risk is like fire: If controlled it will help you; if uncontrolled it will rise up and destroy you.” This comparison of fire and risk remains true for political means but also the everyday operations of any company. A company is confronted with decisions demanding the assessment of risk every day. Enterprise risk management is a framework for handling the assessment of risk that companies may encounter. The enterprise risk management process is a formula for employees and managers to follow to help manage risk. Due to the involvement of employees and managers to complete the enterprise risk management framework there is also important key organizational behavior themes that influence the effectiveness of the framework. Trevor Levine, a highly regarded risk management and process improvement consultant, said, “Risk management is about the people and processes and not about models and technology.” This statement emphasizes the importance of the people and their interactions rather than the formulaic aspect of enterprise risk management which is often the only aspect of the framework that is given attention. There are organizational behavior themes present and necessary in the enterprise risk management framework that allow for the framework to be effectively and positively applied. Enterprise risk management was not a well-known concept in the corporate world just ten years ago, but today most insurance companies and
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