Enterprise Risk Management in Corporation

Enterprise Risk Management in Corporate America

Deborah M. Kauba

Liberty University

ACCT 521

February 9, 2013

ABSTRACT

This research paper will discuss the importance of Enterprise Risk Management (ERM) and how its implementation has impacted today’s society. It will further elaborate on previously developed strategies of an adaptive and broad framework for the systems analysis of managerial decision making processes. This research, based on evidence and measures of the ERM process, will deliver an added value in the collected works given the relationship between managers and their organization. This research will also demonstrate where risk management has been, where it is now and where it could go if it stays on this path. Competitive advantages of how managers head executives, and business owners have changed over time and have begun to develop new ways to better their corporations will also be discussed in this research paper.

In general, Enterprise Risk Management (ERM) has been described as a tool that offers a framework for managing risks in the world of industries and corporations. It is embodied by the recognition of specific procedures and situations which are important to the objectives and goals of an organization. This system is used by many and most all businesses to verify which planning strategies are more beneficial or harmful for a particular company or corporation. ERM is a “risk-based” approach that deals with strategic planning and internal controls. By distinguishing between the risks, corporations produce value to their stakeholders, employees, customers, regulators, owners, and the society as a whole.

ERM plays a vital role in each and every corporation. It requires a particular skill of all managers and business owners to recognize, understand, and prioritize options and how they will affect the company. They must be able to determine what options are better for the enterprise system and which will cause potential harm to the...