Discussion 1: Evaluating the Effects of Risk

Risk lies at all levels of business activity. There are many different types of risks within an organization as well as ways to manage those risks. Discuss and evaluate the concepts of risk and management. When an organization's risk is spread over many facets of the organization, how does risk translate to an organization's financial statements? Provide two specific examples.

References

Fraser, J., & Simkins, B. J. (Eds.). (2010). Enterprise risk management: Today's leading research and best practices for tomorrow's executives. Hoboken, NJ: Wiley.

• Chapter 1, "Enterprise Risk Management: An Introduction and Overview"

This chapter provides an overview of enterprise risk management and discusses how the broad view of ERM can assist firms in managing risk in a holistic way.

• Chapter 2, "A Brief History of Risk Management"

This chapter reviews the early stages of risk management to current thinking on risk management.

• Chapter 6, "Creating a Risk-Aware Culture"

This chapter provides methods on how to create positive, informed, and supportive culture for risk management.