Ten steps to enterprisewide risk management

Purpose The purpose of this paper is to discuss the objectives of enterprisewide risk management ERM, the Committee of Sponsoring Organizations COSO ERM Framework, and outline a method to implement ERM in organizations. Designmethodologyapproach This paper delineates ten steps organizations can use to develop a viable ERM system for any organization. Findings It is highly recommended that a highlevel risk officer with visible support from senior and board level executives has a separate function to oversee the development of an ERM department. Practical implications Although the internal audit department has a large role in evaluation and monitoring the ERM system, it is management's responsibility to develop a strong ERM function that ties corporate strategy, the budget, controls, and the entity's performance measurement systems to risk management. Originalityvalue The cost to the entity of implementing and maintaining of an ERM system is grossly outweighed by the results and knowledge gained in evaluating, assessing, and overseeing risk to insure achievement of strategic objectives over the short and longterm life of the organization.