Learn Risk Management with CFI

Risk management is the identification, evaluation, and prioritization of risks followed by the coordinated and economical application of resources to monitor and control the impact of the events and maximize opportunities.

According to the Commission of Sponsoring Organization of the Treadway Commission, the enterprise risk management definition is “a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.”

Enterprise risk management framework is a strategy that helps organizations gain a comprehensive understanding of their overall risk. Implementing an enterprise risk management framework establishes a consistent risk management culture, regardless of industry standards or employee turnover.