HLS 625 Module 2: Role of Enterprise Risk Management and Risk Strategy

HLS 625 Module 2
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HLS 625 Module 2
Role of enterprise risk management and risk strategy
Over the past two decades enterprise risk management has gained popularity due to various powerful forces. Some of the forces include the need for organizations effectively to manage their risks for the sustenance of their operations and achieve organizational goals. Other effects include government regulations, agency ratings and reviews, and call from shareholders to reform proponents to improve the way risks are managed in the organization (Banks, 2013).
An operational entity has risk management activities in place. The enterprise risk management is responsible for the formulation and deployment of risk management policies within an organization. It implements risk management activities that are aimed at managing a particular risk under the directions of risk committee. Also, it is responsible for reviewing the risks of the organization, and initiating and monitoring mitigating actions with the shareholders (Lam, 2014).
A risk strategy in an organization provides a framework for the identification, assessment, and managing risks within an organization. By having a risk strategy, organizations can identify where uncertainties are and identify the necessary steps that can be taken to protect all the assets involved from that risk (Coleman, 2012).
Driving trends in continuity planning
Another area that has gained popularity over the years is continuity planning in the organization. It has become an essential part of organizations' response planning. Business Continuity Planning (BCP) formulates how an organization will respond to an incident and how it will return to ‘business as usual' as soon as possible (Jim Burtles, & CMLJ, 2015). The driving trends for BCP include:
* The need for evidence that an organization is meeting the expectations of corporate governance from auditors and regulators.
* The demand for reassurance from customers that they will continue to receive goods and services in case anything happens.
* The insurers' request for proof that their continued payment for claims will be reduced by taking...