Overview Of Enterprise Risk Management

Overview Of Enterprise assay Management BINUS Financial gamble honorary society FRM® preparation Program Part 1 Batch 9 FRM ® 1 bag of try Management 6A Ricky Ichsan, CFA, FRM , CFP, ERMCP, CFOS 08161603744 - rickyichsan72@yahoo.co.id 1  translation Of ERM The Casualty Actuarial ordination defines ERM as : ..the disciplene by whice an fundamental law in any sedulousness assesses, controls, exploits, finances, and monitors risks form all sources for the purport of increasing the organizations short and long endpoint value to its stakeholders 2 Risks Addresses By ERM at that place argon four types of risks covered in the ERM framework : 1. bet on Risks They can be further broken down into 3 subcategories : First party profess risks : examples include fire and declare causing property destruction, business interruption, and theft. Second party jeopardise risks : injuries and illnesses related to employees Third party hazard risks : liabilit y relating to injuries to visitors on premises, product recalls, and defective products. 2. Financial Risks Price Risk Interst rove, price, irrelevant exchange, commodity (price of input). Liquidity Risk Cash flow crunch, indistinctness to buy/sell item at a 3 reasonable amount. Credit Risk Default or rate in rating. Inflation/Purchasing Power Risk luxuriously inflation rate reduces purchasing power. Hedging/Basis Risk Price movements between hedging instrument and item being hedged do not move to the same degree. 3. utilitarian Risks General business operations Risk of inefficiency and ineffectiveness mandatory Risk of incompetent leadership/management at the altitude and throughout the organizational ranks. Information Technology Risk of obsolescence and gentleness of teaching technology to function in a ever-changing operatioal enviroment. 4 Risks Addresses By ERM Risks Addresses By ERM Information/Business describe Risk of lack of relia bility and lack of relevance of method of a! ccounting information used for decision...If you want to get a complete essay, vow it on our website: BestEssayCheap.com

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