Northwestern Polytechnic University ?Key Drivers of ERM Efficiency Paper

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Northwestern Polytechnic University

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Select an organization, either your own or another. Discuss at least five key drivers of ERM efficiency that are or should be present in your selected organization. Your discussion should include why you selected each key driver, how each one aligns with the organization's strategic plans, and how each contributes to ERM efficiency.

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Running head: ERM Efficiency

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Name
Assignment
Course
Instructor
Date

ERM Efficiency
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Abstract
This paper contains information about the importance of Enterprise Risk Management
(ERM). It is a catalyst for enhancing organizational performance, effective internal control
and promoting good governance. The research on management of risk has attracted very little
attention despite the increase in the importance of ERM in enhancing the value of
stakeholders. Many corporations due to the awareness of the limitations of the capabilities of
traditional risk management to present-day business environments expanded their traditional
approach to risk management and then to the ERM approach.

ERM Efficiency
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ERM
Enterprise risk management (ERM) has played an important role. This is because
ERM generates value for stakeholders and improves organizational performance. The
importance of management of risk to healthy corporate governance has been recognized
increasingly in the last few years. When dealing with uncertainty that is related to business,
risk management is important. The fast deteriorating global economic system and the 2008–
2009 global financial crisis has created a context in which businesses now face risks that are
more interconnected, complex, and more disturbing than ever before. When there is a failure
in adequately recognizing and effectively managing risks that are connected with decisions
that are being made throughout the organization can lead to potentially disastrous outcomes.
Organizations, however, have come to view risks as an opportunity that benefits the business.
(Nocco, B. W., & Stulz, R. M. 2006).

ERM Efficiency
Enterprise risk management is the procedure exaggerated by a business’s board of
directors, management and other personals, applied in strategy situation and across the
project designed to identify probable events that may affect the body and manage risk to be
within its risk appetite to provide reasonable assurance regarding the achievement of entity
objectives.
The core efficiency of ERM is to achieve strategic goals and objectives determined by
the Board of directors or management. To run the effective ERM program the escalation
should be managed through the right risks to the right program in an appropriate time to
escalate significant risk discussions with BOD or Management to notify decision making.
When ERM is operating correctly, it should amplify resource efficiency and success in the

ERM Efficiency
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management of core risks to the project, while dropping the impact of crisis actions and
shielding the status of the business. (Olson, D. L., & Wu, D. D. 2015).
Candy Company
Candy Company (CC) was manufactured in 2001. This company produces essentially hard
Candy, chewy confections, for example, caramel and salt water taffy and popcorn sweets.
Notwithstanding candy, it additionally delivers private label nutraceuticals. With over 80% of
the business being gotten from private labels and agreement fabricating, it does not just need
to satisfy its very own high guidelines yet, in addition, the investigation of the individuals
who put their name on the last products. Candy Company's requirement for an Enterprise
Risk Management (ERM) system was raised. It chooses together with the CEO that the focus
of the proposal might have the assurance of CC'...


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