BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ensures that an organisation’s objectives will be achieved
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takes an integrated or holistic approach
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addresses strategic, tactical and operational risk management
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none of above
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Detailed explanation-1: -Though traditional risk management still goes some way to protecting an organisation, ERM arguably outshines this model with its ability to safeguard the entire company from any potential threat, whilst ensuring that it stays aligned with its strategies and future goals.
Detailed explanation-2: -ERM encompasses the entire enterprise; and is top-down, whereas traditional risk management may focus on only one area, and not emanate from a holistic view of the entire organization.
Detailed explanation-3: -TRM typically only occurs after an incident has already happened and is done in an effort to prevent that situation from happening again. On the other hand, ERM looks to the future and attempts to determine potential events and situations that could, or are even likely to, occur.
Detailed explanation-4: -Traditional risk management had a focus on pure risks only, things that could be insured. Enterprise risk management has a broader scope, taking into consideration financial risks, operational risks, and strategic risks.