Chapter 15 explained ERM and Edmonton. Do you agree with the approach implemented and why? If you could change anything about the implementation of ERM in this case study what would that be and why?

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Running head: ERM AND EDMONTON

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ERM and Edmonton
Student Name
Institution Affiliation

ERM AND EDMONTON

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Edmonton’s ERM is good and, I can apply it in my future organization because of
various reasons. One of the rationales for its adoption is the incorporation of the strategies
throughout its risk planning framework. For example, Edmonton has linked ERM in its strategic
objectives that are related to different vital components of its strategic plan. As ERM enables the
management to identify and mitigate risks, Key Performance Indicators (KPIs) monitor its
performance. Another reason is incorporating the aspect of value by having funding that is based
on results. It becomes easy to track the cost of different risks based on the severity of the impact
on the company. Funding comes in any form, including but not limited to investors and other
stakeholders’ capital. The strategic identification and mitigation of risks enable the company to
reduce the cost of managing risks such as fraud and related risks. The use of the COSO model,
thus, is suitable for enhancing accountability. COSO model provides a better way for the
management to engage each employee in every department in the identification, assessment and
possible mitigation of risks.
The ISO 31,000 is a great tool the firm has deployed to check for critical aspects of risks
strategically. It gives Edmonton a great opportunity to easily monitor the process of risk
identification, assessment and treatment. The link between strategic objectives and risks that the
company managem…