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The Insurance Times
Chapter - 7
Enterprise Risk Management
n Enterprise risk management (ERM) in business includes the
methods and processes used by organizations to manage risks
and seize opportunities related to the achievement of their
objectives. ERM provides a framework for risk management,
which typically involves-:
l Identifying particular events or circumstances relevant
to the organization's objectives (risks and opportunities),
l Assessing them in terms of likelihood and magnitude of
impact
l Determining a response strategy, and monitoring progress.
n By identifying and proactively addressing risks and
opportunities, business enterprises protect and create value
for their stakeholders, including owners, employees,
customers, regulators; and society overall.
Enterprise risk management defined
n In its "Overview of Enterprise Risk Management," the
Casualty Actuarial Society describes Enterprise Risk
Management as:
n "... the discipline by which an organization in any industry
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