ERM - Assignment 2 Khumo Rabogatsu erm22-076 .

ASSIGNMENT > ERM - Assignment 2 Khumo Rabogatsu erm22-076 .

Botswana Accountancy College Business and Leisure BUS 124 TERMS OF REFERENCE Risk is a component of every business activity; hence it is imperative to practice risk management in the current world where existence depends on unpredictability. It is crucial that risk management practices be as tightly integrated into current operational and strategic planning procedure ...[Show More]

Botswana Accountancy College Business and Leisure
BUS 124
TERMS OF REFERENCE

Risk is a component of every business activity; hence it is imperative to practice risk management in the current world where existence depends on unpredictability. It is crucial that risk management practices be as tightly integrated into current operational and strategic planning procedures as possible to optimize their benefits.

This paper focuses on investigating several risk management practices that are essential for their successful implementation, such as a proper framework for risk management that contains the risk management strategy, architecture, and procedures.

THE PRACTICE OF RISK MANAGEMENT MODULE ASSIGNMENT 2

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EXECUTIVE SUMMARY

From the assessment carried out, it was recommended that the firm embraces both ISO 31000 and COSO, which are ERM standards. It was found that they were complementary to one another, and COSO was most detailed in the areas where ISO 31000 fell short, including risk appetite and considering the firm's strategy, objectives, mission, and core values when making decisions.

Risk management protocols are necessary for the successful implementation of a risk management process in M&K. The report found that there are at least five protocols that are necessary for effective ERM implementation in Minchin and Kelly. The report will further discuss in detail what those five guidelines and protocols are.

The report also found that M&K does not have an explicitly stated risk management strategy. The current strategy proved not to be adequate for the successful implementation of risk management. However, a suitable risk management strategy is proposed.

M&K’s risk management architecture seemed to be non-existent as the report found that there are no clear risk reporting lines within the firm. Thus, the report identifies weaknesses in the risk structure of the firm. However, the report further proposes a more suitable risk management architecture for the firm which clearly states the risk reporting lines, and the roles and responsibilities of the overall staff in regard to risk and risk management