What strategic processes within a company should be factored into a risk-management scenario?
Fodera: The strategy-setting process is designed to identify potential events that may affect the entity, manage risks, and provide reasonable assurance regarding the achievement of the company’s objectives. The enterprise risk management process utilizes inputs from the board members, management and other personnel across the entity to take a portfolio view of risk. The entity objectives are categorized by strategic, operations, reporting and compliance. The roles and responsibilities are key factors in the success of the enterprise risk management process. The event identification differentiates risks and opportunities which management channels back to the strategy setting. Editor: Should companies organize interdisciplinary risk-management teams to oversee a company’s risk assessment? Fodera: It must be interdisciplinary to be successful. Each part of the company needs to be looked at and you need to engage the process owners from each of those different company units. You need to i
