BENEFITS OF ENTERPRISE RISK MANAGEMENT

 Benefits of Enterprise Risk Management
No entity operates in a risk-free environment, and ERM does not create such an environment. Rather, it enables management to operate more effectively in environments filled with risks. ERM provides enhanced capability to do the following:

•  Align risk appetite and strategy: Risk appetite is the degree of risk, on a broad- based level that an enterprise (any type of entity) is willing to accept in pursuit of its goals. Management considers the entity’s risk appetite first in evaluating strategic alternatives, then in setting objectives aligned with the selected strategy and in developing mechanisms to manage the related risks. 
•  Link growth, risk and return: Entities accept risk as part of value creation and preservation, and they expect return commensurate with the risk. ERM provides an enhanced ability to identify and assess risks, and establish acceptable levels of risk relative to growth and return objectives. 
•  Enhance risk response decisions: ERM provides the rigor to identify and select among alternative risk responses – risk avoidance, reduction, sharing and acceptance. ERM provides methodologies and techniques for making these decisions. 
•  Minimize operational surprises and losses: Entities have enhanced capability to identify potential events, assess risk and establish responses, thereby reducing the occurrence of surprises and related costs or losses. 
•  Identify and manage cross-enterprise risks: Every entity faces a myriad of risks affecting different parts of the enterprise. Management needs to not only manage individual risks, but also understand interrelated impacts. 
•  Provide integrated responses to multiple risks: Business processes carry many inherent risks, and ERM enables integrated solutions for managing the risks. 
•  Seize opportunities: Management considers potential events, rather than just risks, and by considering a full range of events, management gains an understanding of how certain events represent opportunities. 
•  Rationalize capital: More robust information on an entity’s total risk allows management to more effectively assess overall capital needs and improve capital allocation.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Latest and Updated Best GST Book - Bharat Gurukul
GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate