ERM POSSIBLE RISKS AND MITIGATIONS
Enterprise Business Management (ERM) is a planned business strategy. It aims in identification, assessment and preparations for possible risks that may interfere with the running of an organization. Some of the possible risks that may affect a corporate organization and there possible mitigations includes the following:
This are risks that cause harm to people and organizations. This may include theft, accidents and fires. Below are the possible mitigations to this risks.
Several accidents may occur in a corporate organization: car accidents, injuries by workers and breakdowns are also part of risks that most companies face.
Insurance policies should be used to cover for these damages. Vehicles and machinery should be insured including the implements attached to these machinery.
Inclusion of additional costs to cover for any possible losses that may occur.
Locked gates, doors, security alarms should be kept to reduce possible theft.
This are possible risks that affect finances of an organization. Finances maybe less sufficient to support and meet operational expenses. There may be financial fraud in the company.
Financial planning. This involves planning on how finances will be allocated to different departments in an organization. Risk would be reduced through changed work practices. There should be audit insurance that helps to transfer risks.
Risks can be mitigated through safety measures, systems provided in the organization. This may include reserve allocation or using financial instruments to minimize the impact of loss brought about by the risk.
The staff maybe incompetent professionally. Clients may not receive the appropriate services. Staff may fail to know the way forward in different circumstances.
Change of recruitment and selection procedures. Provision of an organizational manual. This reduces risk through change of work practice.
Professional indemnity insurance that helps to transfer risks