ABSTRACT
Chapter 4 introduces the Enterprise Risk Management (ERM) practices that are utilized by organizations in the operational risk management discipline to provide an adequate governance structure. This structure includes accountability, transparency, independent decision-making by executive stakeholders with legal and regulatory oversight.
The foundation of risk management methodologies stems from the ERM framework. This is defined as an organization’s ability to understand, control and articulate the nature and level of risks while understanding the business strategy. One of the main benefits of the ERM framework is an enhanced viewpoint and focus on risk management within the organization.
