Who Wants a Magic Decoder Ring For Enterprise and Operational Risk Management (ERM) And (ORM)?
This article will focus on two where your operations and strategic people can collaborate to actually make or save money for the company. That is correct. We are going to talk about the difference between the enterprise and operational versions. At the simplest level, think of operational risk management as part of an enterprise risk management system. Some people view the comparison as like the discussions you can read about the difference between strategy and tactics. Both strategy and tactics are needed to execute corporate vision for your company to move forward as it executes annual plans and long term goals. Why should the relationship between these two versions of risk mitigation not have the same type interaction? Wikipedia, the free encyclopedia defines the term operational risk management (ORM) as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk.
