What is Enterprise Risk Management.edited.docx - Enterprise...

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Enterprise Risk Management Enterprise risk management is defined as the business strategy that identifies, assess and prepares for any potential threats to the operations of the organization. The discipline promotes the awareness of the organizations to potential threats and the management of the strategic plans. Kenton (2019) argues that companies have been managing business risk by taking insurance that covers the potential threats exposed to the company. Besides, other organizations have been using the capital markets as an instrument to manage the movement in currencies, inflation, commodity prices and interest rates (Kenton, 2019). The organizations that are in business in the present times are faced with many potential threats such as legal actions, daily operations, financial constraints and technological competition. The enterprise risk management team provides information that is vital in the decision making at the relevant departments in the organization. The Environmental Protection Agency advises the organization to deal with dangerous substances to develop risk management plans to
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