Page 190 - SBL Integrated Workbook STUDENT 2018

Chapter 15

2.5 Benefits of effective ERM

 enhanced decision-making by integrating risks

 the resultant improvement in investor confidence, and hence shareholder value

 focus of management attention on the most significant risks

 a common language of risk management which is understood throughout the
organisation

 reduced cost of finance through effective management of risk

Illustrations and further practice

Now try TYU question 1.

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