Textbook Problem

What is the most important reason for an organization to use enterprise risk management?

To determine

Identify the reason for an organization to use enterprise risk management.

Explanation of Solution

Enterprise Risk Management:

Enterprise risk management is a process in which, business risks are maintained at a level decided by the management, so that the strategic plans of the organization are achieved. Risks are maintained at a level that satisfies both the risk category as well as objectives of the organization.

The reason due to which an organization uses enterprise risk management is, to facilitate decision making for achievement of strategic plans and to deal with the unpredictable business environment.