Q3. Does good corporate governance matter to ERM? Discuss referring to an example:
Corporate governance is a system by which organizations are directed and controlled. BOD is responsible
for governance of their organization. Enterprise risk management is
Question 4 Discuss the reasons why companies would not adopt ERM?
There are several reasons: -
Companies cannot demonstrate sufficient ERM value and implementation costs
where the economy has positive return on investments.
If the costs of implementing ER
Question 6 When developing an ERM framework, how might the application of theoretical
concepts improve the implementation and operation of the framework.
Application of theoretical concepts: ERM helps management in the decision making process
and in estab
Q8. Explain the risk assessment process including the prioritization of certain risks
providing an example to illustrate.
Ans. Risk assessment is the determination of the quantitative estimate of risk related to a welldefined situation and a recognized th
Q7. What do you consider to be the benefits and limitations of risk appetite statements?
Ans. A risk appetite, put simply, is the amount and type of risk that an organization is willing to
take in order to meet its strategic objectives this includes refer
Q9. Identify some factors positively linked to the stage of ERM implementation.
Ans. Factors that are positively linked to ERM implementation consist of company specific
variables such as financial, structural or ownership characteristics. These are:
11. Discuss some corporate governance reforms both in Australia and internationally
following the accounting scandals of the early 2000s
Internationally, the New York Stock Exchange, NASDAQ, and the SEC proposed new rules for
stricter corporate governance
10. Analyze the pros and cons of an ERM strategy from an organization of your choice.
Benefits of a formal ERM strategy
Creates a culture of risk awareness within the organization
Enables better business performance