4 The components of a company-wide ERM framework
An ERM framework covers the whole organisation. It includes: process, tools, governance, measures and people, all underpinned by an appropriate culture. Take a look at the elements of an ERM framework.
First take a look at Video 4 and hear what the experts say should be in a risk management framework.
Now have a look at Video 5, which covers an Enterprise Risk Management framework.
Before moving on to the next section you should recognise there is no ‘one right way’ to do risk management and most of the standard guides and codes refer to the need to ‘customise’ the approach to fit each organisation. The example given in the next two sections relates to practice used in Rolls-Royce, but these will not necessarily work in whole or even in part in other organisations.