See the attached document.
Answer the Below Question. APA format. 300 words.
Textbook :
Information Governance: Concepts, Strategies and Best Practices; John R.S. Fraser, Betty J. Simkins, Kristina Narvaez; Copyright © 2015 by John R.S. Fraser, Betty J. Simkins, Kristina Narvaez (ISBN 978-1-118-69196-0)
Beasley, M. S. (2016). What is Enterprise Risk Management? Retrieved from https://erm.ncsu.edu/az/erm/i/chan/library/What_is_Enterprise_Risk_Management
Question : Integrating ERM with Strategy Do, H., Railwaywalla, M., & Thayer, J. (2016). Integration of ERM with Strategy (p. 35) reading provided 3 use cases on methods of integrating ERM with strategy. Review the approach of each company and provide a summary of the key differences between the three implementations.
Write Response to below two Discussions seperately.APA format. 100 words each.
DISCUSSION 1:
Integrating enterprise risk management
The research was based on Mitchell industries, Eli Lilly and Daisy Company. It was found that different approaches depending on the culture, nature of business and objectives determined implementation of the Enterprise Risk Management (ERM). Technology changes, shifts in industry processes and globalization brought about complexity in production, marketing and distribution of products. Creation of a link between the frame working and the ERM of organization is aimed at coming up with the best risk mitigation strategies to create business continuity in case of any calamity (Arena, et.al, 2017).
The top management in Mitchell industries worked hand in hand with ERM of the firm but lacked a strategy bridge between business units and mutual task. Full understanding of the assessment of ERM was the key factor considered in Lilly Company having the tactical scheduling procedure and ERM development based on the same platform. Devolution of the culture was practiced in Daisy Company having a connection built between risk and strategy (Bromiley, et.al, 2015).
The connection between the process of mitigating risk and the production process in any organization is very essential in any business to enhance prediction of any disaster that might occur. This was only practiced by Daisy and Lilly companies having Mitchell Company rejecting to utilize it. Strong relationship between different departments of an organization promote unity and teamwork. Unlike the other companies, the Daisy Company generated future business continuity by passing culture of the organization from generation to another. Educating the employees about the benefits associated with having good risk mitigation system enable the workers to work tirelessly to avoid any risk. This was only made in use by Lilly Company who ensured complete understanding on what is meant by enterprise risk management system (Shad, et.al, 2019).
References:
Arena, M., Arnaboldi, M., & Palermo, T. (2017). The dynamics of (dis) integrated risk management: A comparative field study. Accounting, Organizations and Society, 62, 65-81.
Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk management: Review, critique, and research directions. Long range planning, 48(4), 265-276.
Shad, M. K., Lai, F. W., Fatt, C. L., Klemeš, J. J., & Bokhari, A. (2019). Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. Journal of Cleaner production, 208, 415-425.
DISCUSSION 2:
ERM Application Comparison
ERM at Mitchell Industries
The company risks management is rooted in most of its business practices such as R&D, contract management, executive planning etc. After the financial crisis, the company placed a greater emphasis on risk management by appointing a senior member to the Audit committee. This led to an integrated ERM approach with the management at the top. Further the ERM of the company involves integration with the management overall planning in the ERM cycle, whereby the risks of the company are analyzed through interviews and surveys and remedies suggested (Viscelli, Hermanson, & Beasley, 2017). The communication of the mitigation plans is based on those risk which are critical for the survival of the business.
ERM at Eli Lilly
The company chose a different path of integrating ethics and compliance with its key strategic risks .Further, the ERM strategy comprises of public policy and compliance committee and the Audit Committee whose task is to bring in both accountability and oversight at the board level. The alignment of the E& C with the ERM was majorly for two reasons; independence and risk identification. The ethics and compliance conducts risk mitigation and identification which brings in greater efficiency (Viscelli, Hermanson, & Beasley, 2017) .Further, within the upper level management there is the compliance and ERM committee, and an ERM core team within the lower management levels
Daisy Company
Daisy company operates under a corporate-level RMC that is inclusive of top-level management and nine other subcommittees which includes Emerging markets, HR, IT, cyber risks supply chain, Finance and Reporting etc. These meet four times year where risks likely to be identified for the company are outlined and rated in a 3 criteria mode of velocity, probability and impact. The mitigation efforts are then used to give solutions about the identified risk for the company based on the urgency and level of impact. The CEO makes changes to the ERM strategy each year and supports implementation of new ones.
References
Kennedy, P. (2008). Enterprise risk management: Effective ERM practices. Strategy & Leadership, 36(3). doi:10.1108/sl.2008.26136cac.001
Viscelli, T. R., Hermanson, D. R., & Beasley, M. S. (2017). The integration of ERM and strategy: Implications for corporate governance. Accounting Horizons, 31(2), 69-82. doi:10.2308/acch-51692