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FG Erm

The document discusses enterprise risk management (ERM), which refers to an organization's culture, capabilities, and practices for managing risk across the organization in a way that is integrated with strategy and execution. Implementing ERM can help reduce unacceptable performance variability, align varying risk management views, build investor and stakeholder confidence, enhance corporate governance, and help the organization successfully adapt to a changing business environment. The document also notes that while the ERM and internal control frameworks are interconnected, they have different focuses - ERM is risk-based while internal control is control-based. It then outlines a six-step risk assessment approach to designing internal controls.

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Dian Nur Ilmi
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20 views7 pages

FG Erm

The document discusses enterprise risk management (ERM), which refers to an organization's culture, capabilities, and practices for managing risk across the organization in a way that is integrated with strategy and execution. Implementing ERM can help reduce unacceptable performance variability, align varying risk management views, build investor and stakeholder confidence, enhance corporate governance, and help the organization successfully adapt to a changing business environment. The document also notes that while the ERM and internal control frameworks are interconnected, they have different focuses - ERM is risk-based while internal control is control-based. It then outlines a six-step risk assessment approach to designing internal controls.

Uploaded by

Dian Nur Ilmi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ENTERPRISE

RISK MANAGEMENT
Focus group 2

bethari larasati / rana aulia / ruwina tri a / dian nur ilmi /


michelle / shafira r / randy lidian / nun
Enterprise Risk Management

Enterprise risk management (ERM) is the culture, capabilities, and


practices, integrated with strategy-setting and its execution, that
organizations rely on to manage risk in creating, preserving, and
realizing value.
why we should
implement the ERM?
Reduce unacceptable performance variability

Align and integrate varying views of risk


management
Build confidence of investment community and
stakeholders

Enhance corporate governance

Successfully respond to a changing business


environment

Align strategy and corporate culture


COSO-ERM and COSO-IC

ERM framework takes a risk-based


Internal control framework takes a control-based

The two are interconnected, but not interchangeable.


Risk Assessment Approach to
Designing Internal Control

1 2 3
identify and assess changes
assess inherent
analyze risks that impact the
risk
internal control

6 5 4
assess residual responses toward
develop a response
risk risks
thanks!
Any questions?

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