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Paper Topic:

Mergers and Acquisitons

FINANCIAL RISK MANAGEMENT

Research

ENTERPRISE RISK MANAGEMENT

xx July 2008

Abstract

Risk management is giving an understanding regarding with the agenda of some financial institutions . This tackles some limitations and the roles and responsibilities of the venturing the risk management

This Research will give some information if the Risk Management is really a good decision to have in an institutions , it ill also tackle the roles and the responsibilities of the Enterprise Risk Management what will be the benefit of outsourcing Enterprise Risk Management and will discuss also

the global dimension of ERM and their strategies

This Research will also discuss the Risk of going into global and the financial risk of the Global Dimension

Introduction

The traditional risk management approach has been described as a highly disadvantageous method of managing firm risks . Within this approach various categories of risk are managed in divide units within the firm Financial firms often manage market , credit , liquidity , and operational risk separately in individual risk silos . Usually , non financial firms have followed a related attempt to danger , financial , venture , and strategic risks (Risk Management and Insurance Review , 2003

Enterprise Risk Management (ERM ) typify as a primary shift in the way businesses must advance risk . An enterprise wide come up to risk management treats each of these risk classes as part of the firm 's overall risk assortment that is managed holistically (COSO-ERM , 2004

WHAT IS ERM

ERM can be define as Enterprise Risk Management which is a method concerning by the an individual , organization and other staff concerning tactic setting and across the enterprise , planned to identify possible events that may affect the entity , and manage risk to be within its risk inclination , to provide sensible assertion regarding the attainment of entity objectives (Rutledge , 2004 Enterprise Risk Management (ERM ) captured the attention of risk management professional and academics globally . Not like the conventional silo based ' advance to corporate risk management , ERM enables firms to benefit from a primarily protective to increasingly unpleasant and strategic (Holton , 2004

The economy becomes more help driven and globally pointed businesses cannot provide to let new , unforeseen areas of risk remain unidentified Currency instability , human resources in foreign countries , dissolving distribution channels , corporate governance , and unprecedented dependence on technology are just a few of the new risks businesses must asses . A lot of organizations are choosing to put into a practice an Enterprise Risk Management process to ensure that a uniform approach to risk identification , measurement and treatment is utilized across the organization (Holton , 2004

ERM-INTEGRATED FRAMEWORK

The Fundamental principle of Enterprise Risk Management is that every individual exists to offer value for its stakeholders . All individuals face uncertainty and the challenge for management is to find out how much uncertainty to accept as it struggle to grow stakeholder value Uncertainty presents both risk and opportunity , with the potential to erode or enhance value (Beasley , 2004

Here we can conclude that ERM represents a very thrilling opportunity for the financial services industry to create new markets...

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