How Do You Implement Enterprise Risk Management?
Enterprise risk management (ERM) is a comprehensive approach to risk in business. The process itself consists of multiple steps, however it is designed to accomplish two major goals. First, it addresses and categorizes all potential risks facing a business. Second, it provides a framework for mitigating risk while maximizing value for shareholders. The Casualty Actuarial Society (CAS) has developed a model for enterprise risk management that identifies the various risk categories and outlines specific steps to take when implementing the process. This article summarizes the Casualty Actuarial Society’s model for enterprise risk management. If you would like more information on enterprise risk management, follow the link to the CAS website in the resources section. *ESTABLISH CONTEXT* Identify the company’s goals as well as its strengths and weaknesses. Asses the company’s communication with shareholders and determine the major risks facing the company. *IDENTIFY RISKS* Identify risks an
