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Discission-1.
Enterprise risk management is determining and methodologically addressing the potential risks that prevent an organization from achieving its objectives. Or the risks that prevent an organization from attaining a competitive business advantage. The business decision-making process is based on the risks identified by the ERM model, which helps the organization's management make better decisions (Braumann, 2018). The covid-19 pandemic has accelerated the civil unrest, leading to increased risks such as cybercrime and other economic problems. These risks become a challenge to the success of the organization. The use of ERM tools is critical for the success of many organizations, especially in helping the company make better business-informed decisions. The ERM awareness is essential for the model to help reduce risks. As such, ERM awareness is a vital element in an organization's ERM system. This paper explores the role of risk awareness in enterprise risk management and the critical success factors.
Discussion-2.
The topic which I choose from the library database is enterprise Risk Management is management followed and practiced by organizations to identify, locate, and address the risk. ERM addresses risk strategically to make sure that the approach will not only work during the risk-like situation but also will minimize or remove the risk. It is the best option to keep organizational functioning smooth, and in better condition, it helps in achieving the in-time goals and objectives within the organization (Olson & Wu, 2018). ERM always functions under the rules set up by the higher/top management or the board of directors of the organization. Which means it runs under their surveillance. No doubt higher management when chalked down the points to be covered in the ERM thinks the overall risk within an organization.
ERM is efficient and capable enough to address the risk of all departments within organizations and not a particular one or an individual. It is necessary to understand that while drafting ERM the participants must be aware of the earlier incidences and share those with the drafting members (Hardy, 2015). ERM is now a big trend due to its successful and real-time results. ERM covers almost more than 20-25 risk areas within the organization and which is a big enough number. ERM requires the team to be got ready to perform during risk-like situations. It is a need that this team must be well trained and equipped with the most advanced system, or aware of the available resources within the organization during risk like situations and shall use efficiently during the risk to minimize the risk.
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