chapter 8 treasury

Chief Technology Officer (CTO)

- is responsible for managing risks related to the organization's information technology (IT) operations,

Treasurer

- is responsible for managing risks related to financing and cash flow

Chief Operating Officer

- is responsible for managing production and distribution

Chief Marketing Officer

- is responsible for sales and customer relationships, and so on.

traditional approach to risk management

- is often referred to as silo or stove-pipe risk management whereby each silo leader is responsible for managing risks within their silo

Enterprise risk management (ERM)

- is a framework for managing organizational risk. Organizational risk is a broad term _____ is a business process with specific steps, milestones, and stakeholders.

Managing risk

- is traditionally viewed as minimizing harm to the value the organization creates for itself, employees, shareholders, customers, and the community

ERM framework

- is a set of principles and procedures that help the organization manage anticipated risks so that it can successfully achieve its objectives.

Business continuity management (BCM)

- is a management process that businesses use to identify potential threats and plan ahead in case those threats are realized, making sure the company can deliver on its obligations to customers, suppliers, and employees.

modern view of enterprise risk management

- is that it should help you increase the likelihood of meeting your organizational objectives rather than simply compiling a list of potential issues

risk management software

- is about more than simply protecting your assets. It's about building a risk-aware culture so that your employees can take the most informed actions and make the best decisions.

ERM framework's purpose

- is to help you identify, assess, and analyze key business risks—and minimize negative business impacts if those risks come to pass.

Robust data analytics, AI, and machine learning (ML)

- can help you create scenarios and models that pinpoint not only the potential for harm but the potential for business growth.

goal of an ERM process

- is to generate an understanding of the top risks that management collectively believes are the current most critical risks to the strategic success of the enterprise

core output of an ERM process

- is the prioritization of an entity's most important risks and how the entity is managing those risks,

Top management

- is responsible for designing and implementing the enterprise risk management process for the organization

The board of director's role

- is to provide risk oversight by (1) understanding and approving management's ERM process and (2) overseeing the risks identified by the ERM process to ensure management's risk-taking actions are within the stakeholders' appetite for risk taking