What Is Strategic Risk - markfrigo.org

What is Strategic risk manage - ment (SRM)? Is it the sameas or different from enterprise riskmanagement (ERM)? What kindsof events or risks are strategicrisks? Boards of directors andmanagement teams have been ask-ing these questions a lot ofthe lessons many organi-zations learned from the globalfinancial crisis is that they need toclearly link strategy and risk man-agement and be able to identifyand manage risk in a highly uncer-tain environment. Another is thatthey must focus risk managementon creatingvalue as well as protect-ingvalue. In this article, we presenta working definition of and guid-ing principles for SRM that man-agement teams and directors canuse to help link ERM with strategyand strategy execution and tofocus risk management on creatingand protecting value. This insightis based on some of the latestdevelopments in Strategic riskmanagement from the work we redoing with management teamsand boards, research in the Strate-gic Risk management Lab atDePaul University, and throughcollaborative research with theCommittee of Sponsoring Organi-zations of the Treadway Commis-sion (COSO) and other universi-ties and professional Relationship between SRM and ERMIn 2004, COSO issued its EnterpriseRisk management IntegratedFrameworkwith this definition ofERM (see ):Enterprise risk management is aprocess, effected by an entity s boardof directors, management and otherperso

Critical Steps for Strategic Risk Management Strategic risk management increas-ingly is being viewed as a core competency at both the manage-ment and board levels.

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  Management, Strategic, Risks, Ment, Manage, M anagement, Strategic risk, Strategic risk management strategic risk management

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