Implementing Enterprise Risk Management

Chapter 22 presented a case study in creating value from uncertainty, and chapter 25 presented the use of efficient frontier analysis in SRM. Assume you are the project lead for the analysis team that uses Efficient Frontier Analysis to evaluate risks of the portfolio presented in chapter 22 & 25. How would you explain the results of the analysis to non-technical decision makers? What recommendation would you make, assuming the risk appetite presented in chapter 22 & 25?

Requirements:

1) Provide a minimum of 3 references on the Discussion.

2) Proper APA Format Work must be Original

BOOK: Fraser, J., Simkins, B., & Narvaez, K. (2014). Implementing enterprise risk management: Case studies and best practices. John Wiley & Sons

Answer preview

To achieve enterprise risk management, companies need to utilize all portfolio options. These portfolio options will be useful for managing both insured and non-insured risks. Also, they will manage the portfolio of the organization hence monitor any losses.  However, these portfolio options can be applied by utilizing the Efficient Frontier, which helps determine the financial value as well as the risk measures included in a project. The portfolio option is available under the Coverage Availability approach, which is the best fit for the firm that has already established effective risk management. Projects are risky activities, and they demand high financial resources hence the need to ensure and manage the risks that come with them.

The results of the analysis to non-technical decision-makers

The Efficient Frontier analysis is conducted to establish the financial value and risk measures involved in the project. Therefore, as the project lead, the results of the analysis can be explained to the non-technical decision makers suing…

 

(650 words)