The Board of the firm shows interest in your proposal for RAROC but is inquiring about the
Question:
The Board of the firm shows interest in your proposal for RAROC but is inquiring about the concept of Enterprise Risk Management (ERM).
(a) Distinguish ERM from traditional risk management in terms of approach and organisational set-up. (5 marks)
(b) Examine at least three (3) important benefits of ERM for the Board. (9 marks)
One Board member is concerned that the ERM philosophy is little abstract and requires a more concrete illustration of its potency. After a difficult year due to the COVID19 crisis, the chief concern of the Board is focused on operational risk, particularly business continuity.
(c) Illustrate to the board in less than four hundred (400) words and in concrete examples the main risks the firm should consider for its business continuity. (16 marks)
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins