Question: Different corporate cultures Edit
Answer: ERM is a complex process…
… involving broad-based and in-depth knowledge and understanding…
… requiring an appropriate corporate culture,…
… and creativity…
… born of a variety of experiences…
… and insatiable curiosity.
Different corporate cultures require different ERM approaches
• Senior management commitment and sponsorship – To embed the risk management approach
throughout the firm,the support of senior management is very essential. Without their support
it cannot flow throughout organization effectively & efficiently.
• Embed a “risk management culture” in the corporation at the operational level – After senior
management commitment risk management culture should be spread in the corporation at the
operational level. To identify & mitigate risk a risk management culture is required at the
• Provide for accountability, both specific and widespread – It is very important to make a
person accountable & responsible for a particular job i.e. risk management so that nobody takes
it in a light manner.
• Clearly defined responsibilities for coordination and maintenance – Proper work should be
assigned to people so that there is no confusion as to which work is to be done by whom.If theer
are clearly defined responsibilies then the risk management process will have a coordination
and proper maintenance.
• Adequate communication – There should be adequate communication between employees and
top management to resolve any issues effectively & efficiently. Edit
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