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Enterprise Risk Management (ERM)

Enterprise risk management (ERM) is the discipline by which an organization in any industry assesses, controls, exploits, finances and monitors risk from all sources for the purposes of increasing the organization’s short and long term value to its stakeholders. [Source: Casualty Actuarial Society (CAS) Overview of Enterprise Risk Management]


It is a process, affected by an entity’s board of directors, management and other personnel, applied in a strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity goals. [Source: Society of Actuaries (SOA) Enterprise Risk Management Specialty Guide]


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