ENTERPRISE

RISK MANAGEMENT

GROUP 1 Next
 Group BRAINSTROM
PRESENTATION

Member

Ahmad Dhanny Adek Sri Ammar Alifa Rachma Audrey

Lazuardy Wahyuni Muhammad Dzikra Fadila Odelia
2210532040 2210533068 2210532022 2210533004 2210533045
The Definitions
A comprehensive and
A variable that can integrated framework
cause deviation from for managing key risks
an expected outcome in order to achieve
business objectives,
minimize unexpected
RISK
earnings volatility, and
maximize firm value

ERM
 The Benefits
increased organizational effectiveness,
better risk reporting, and
improved business performance
 Step 1 : Strategy and objective
Process of
definition
Enterprises Risk
Step 2 : Event identification
Management
Step 3 : Risk Asessment
( ERP )
Step 4 : Risk Response
Step 5 : Comunication
Step 6 : Monitoring
 STEP 1 : STRATEGY AND
OBJECTIVE DEFINITION

Develop a clear strategy and objectives for your Enterprise Risk

Management (ERM) program.
Define the organization's mission, strategic objectives, and operational,
reporting, and compliance objectives.
Ensure that objectives are understandable, measurable, and aligned
with the organization's mission.
Consider both external factors (like regulatory obligations) and internal
factors (like management reporting) when setting objectives.
Assess and align strategic objectives with the organization's risk
appetite.
 STEP 2 : EVENT
IDENTIFICATION
Identify potential events, both internal and external, that may impact
the organization's objectives.
Consider economic, natural, political, social, and technological factors.
Analyze internal factors such as infrastructure, personnel, processes,
and technology.
Evaluate the significance of identified events.
Use various techniques like facilitated workshops, historical data, and
industry benchmarks to identify events.
Understand the relationships and interdependencies between events.
 STEP 3 : RISK
ASSESSMENT
Assess each identified risk for its potential impact and the organization's
vulnerability to it.
Consider inherent risk (without mitigation) and residual risk (after
mitigation).
Evaluate the likelihood and impact of risks over a specific time period.
Use internal data, industry benchmarks, and external data for
assessment.
Employ qualitative and quantitative techniques.
Determine the top ten most significant risks for the organization.
 STEP 4 : RISK
RESPONSE
Develop responses to each identified risk based on its likelihood and
impact.
Choose from four categories: avoidance, reduction, sharing, or
acceptance.
Align responses with the organization's risk tolerances and risk appetite.
Consider factors like cost versus benefit and potential opportunities.
Develop action plans for implementing risk responses.
Implement control activities to ensure risk mitigation.
 STEP 5 :
COMMUNICATION
Formalize communication plans and information management.
Gather relevant financial and operational data for risk management.
Ensure accurate and timely data processing and management.
Communicate the importance of ERM, objectives, risk appetite, and
roles and responsibilities to employees.
Provide external communication to regulators and analysts.
Establish open channels of communication to address issues promptly.
 STEP 6 :
MONITORING
Continuously monitor the ERM program.
Modify the risk profile as situations change or events occur.
Use ongoing activities and separate evaluations for monitoring.
Analyze the design and results of tests to determine program
effectiveness.
Identify deficiencies and take corrective action as necessary.
Document expectations for reporting deficiencies and escalation.
 Thank You
I hope you can get helpful knowledge
from this presentation. Good luck!