Differential attributes between Risk Management and Enterprise Risk Management (Meulbrock 2002; Lam 2001; Cumming & Hirtle 2001; Dickinson 2001) Risk Management (RM) Enterprise Risk Management (ERM) “Silo, individual view of risk © Global, holistic view of risk ‘Specific risk analysis * Risk analysis across the organization “Tactic orientation ‘+ Strategic orientation Related to control and minimization _|® Related to competitiveness Organization specific, department or | * Individuals, business units and the business unit. Concentrated on business events “Disaggregated methods for risk analysis Responsibility on the fianetional managers ‘Performance evaluation concentrated on the particular problem solved Protection of adverse financial effects of bad events. Eamings volatility protection from the source *Reactive Specific control on section or division expenditures Individual risk analysis 1 priority isin the portfolio and individual sources complete organization. Corporate view Aggregated methods * Govemance/stakeholders responsibility © Risk performance evaluation enterprise wide and based on risk ‘© Organization stability _ protection. Decision making process based on risk * Proactive * Reviews and reduction of duplication of risk management expenditures © Interdependent risk analysis Priority can be in portfolio structure, assets modification, strategic movements .