It may be easier for some to understand ERM by thinking about five “everyday questions” that can be used to apply risk management thinking:

a. What are we trying to accomplish (what are our objectives)?

b. What could stop us from accomplishing them (what are the risks, how bad could they be, and how likely are they to occur)?

c. What options do we have to make sure those things do not happen (what are the risk management strategies, that is, responses)?

d. Do we have the ability to execute those options (have we designed and executed control activities to carry out the risk management strategies)?

e. How will we know that we have accomplished what we wanted to accomplish (does the information exist to evidence success, and can we monitor performance to verify that success)? Think about the reasons you decided to take this course and answer each of those questions with a focus on achieving your desired level of success.