What is an important difference between risk management applied to enterprise sy

Question

What  is an important difference between risk management applied to  enterprise systems and risk management applied to other contexts or  environments?style="line-height: 19.0px;background-color: rgb(255,255,255);">style="font-family: arial;font-size: medium;">

style="line-height: 19.0px;background-color: rgb(255,255,255);">style="font-family: arial;font-size: medium;">

Would need reference material to confirm answer.
style="line-height: 19.0px;background-color: rgb(255,255,255);">style="font-family: arial;font-size: medium;">

Explanation / Answer

In enterprise risk management, a risk is defined as a possible event or circumstance that can have negative influences on the enterprise in question. Its impact can be on the very existence, the resources (human and capital), the products and services, or the customers of the enterprise, as well as external impacts on society, markets, or the environment. In a financial institution, enterprise risk management is normally thought of as the combination of credit risk, interest rate risk or asset liability management, liquidity risk, market risk, and operational risk.

In the more general case, every probable risk can have a pre-formulated plan to deal with its possible consequences (to ensure contingency if the risk becomes a liability).

From the information above and the average cost per employee over time, or cost accrual ratio, a project manager can estimate:

Risk in a project or process can be due either to Special Cause Variation or Common Cause Variation and requires appropriate treatment. That is to re-iterate the concern about extremal cases not being equivalent in the list immediately above.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.