How does the ERM framework affect an organization that already has a sound system of internal controls?
A strong system of internal control supports the achievement of the organization’s business objectives and therefore, good internal control is a way of managing risk. However, ERM is much broader than internal control and includes additional management efforts to ensure an organization achieves its business objectives. How will the framework assist organizations to best reduce their exposure to risk? By formally organizing ERM responsibilities and activities, an organization is much better positioned to achieve its business objectives and to ensure that sound risk management processes are in place and functioning. The ERM – Integrated Framework provides a comprehensive road map for establishing the critical processes needed to ensure an effective ERM effort. The framework offers a structured, consistent, and continuous process to be used across the organization to identify, assess, respond to, and report on opportunities and threats that affect the achievement of objectives. What are t
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