Risk Enterprise Management

ERM (Sobel Reding , 2004

In addition , by using COSO recommendations , Enron would have efficiently heightened its management of enterprise risk management by considering risk avoidance and capital protections , accepting that they are also susceptible to risk , adapting ways of addressing losses , risk financing , transfer , securitization and repacking of assets in to efficiently manage loss control despite many senior executives lacking the confidence in the identification and management of a risk (Molle 2008 . ERM helps identify future risks to be able to manage all the potential risks in the physical and

financial risk . Identification of future events can have positive effects on aligning strategy , people processes and technology . ERM creates and preserves enterprise value (KnowledgeLeader , 2008

Enron would have also established the best practice ERM function on different organizational levels within its organization . For instance at the project management levels , corporate level as well as strategic business unit level . Within the same line of eliminating extreme risk events , Enron would have ensured ERM best practice at organizational level and at the on financial firms (Molle , 2008

By introduction of policies and strategy for risk management with regard to the ERM context , the Enron Company would have found it efficient in their management skills . This , they would have done by managing the foreign exchange and interest rate , its liquidity and liability management , balance sheet , credit risk , operational risk and capital management to be able to plan on which way the company would have taken for effective management of the company (Molle , 2008 Following governance guidelines established by Sarbanes-Oxley would have made it possible for a smart business by Enron since it would have been able to identify the priority risks (Maltz , 2003

If Enron was been able to measure their susceptibility to bankruptcy then it would have just as well managed to...