or business.

1. Define what value your organization will gain from ERM

2. Research and understand different standards and frameworks

3. Inventory what your organization is already doing

4. Seek support and help

5. Keep it simple

6. Start small

7. Go for the quick wins

8. Delegate “fixes” to risk owners

9. Report on progress

10. Develop your “soft skills”

Steering Committee– a senior level committee comprised of a broad cross-section of individuals
familiar with the varied aspects of the company’s operations, who are responsi le for implementation of an ERM program

Risk Appetite– tolerance for risk

Mega –a consequence of enormous measure that threatens the very existence of an organization

Risk Frequency–likelihood that a specific risk will occur and reoccur

Risk Mitigation– actions that reduce the consequences of a risk

Risk Owner –an individual within an organization familiar with an identified risk and responsible for understanding and managing the risk

Risk Assessment–measurement of the combination of risk frequency and risk severity using an established algorithm

Risk-Reward Analysis– a process to identify and measure risks and benefits of an action or
decision in order to act in an informed manner

Risk Severity– extent of the damage to the business, its people, and its goals and objectives resulting from a risk occurring

• Financial – a consequence  that impacts financial condition or well-being
• Strategic – a consequence  that may create a lasting impact or change on a fundamental objective or  mission 
• Operational – a  consequence that impacts day-to-day activities
• Compliance – a  consequence that constitutes a violation of a law or regulation, or  institutional policy or requirement
• Opportunity – the loss of  a benefit or advantage caused by not pursuing a course of action
• Reputational – a  consequence that impacts image, standing or character

Reduce it.

Shift it.

Assume it.