The Project management body of knowledge (PMBOK) has laid down 12 principles. Risk management is attempting to identify and then manage threats that could severely impact or bring down the organization. In this article we’ll discuss the 3 must-have roles for risk management within your organizational and project risk structure. While the responsibility for identifying and managing risks belongs to management, one of the key roles of internal audit is to provide assurance that those risks have been properly managed. ENTERPRISE RISK MANAGEMENT Part One: Defining the concept, recognizing its value continued on next page FOREWORD This three-part monograph series Enterprise Risk Management is available as three PDF documents on the Web site of the American Society for Healthcare Risk Management (www.ashrm.org, Resources). The impact will be felt from the top to the bottom and transcend across the board, management, and stakeholders. Effective Enterprise Risk Management (ERM) Should be a Valued Strategic Tool. Step 1. Inherent risk is the risk that exists regardless of any attempts to control it or mitigate it. The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization.The number of levels in management increases when the size of the business and work force increases and vice versa. Risk Management is the process of minimizing the risks in an organization. Risk Management Projects/Programs. Boards can continue to expect risk management to be an increasingly challenging part of board decision-making. Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. The risk owner should be capable of managing the risk and have the knowledge, resources, and authority to deal with the risk. To do that one needs to take the best possible decisions. Effective enterprise risk management is becomingly increasingly important in today’s regulatory environment. In larger organizations, various models are employed to assure that risk is adequately managed. A risk management audit may spur new ideas and prompt improvement in how risks are managed Senior management is responsible for reinforcing the tone at the top, driving a culture of compliance and ethics and ensuring effective implementation of enterprise risk management in key business processes, including strategic planning, capital allocation, performance management and compensation incentives. Governance is the set of responsibilities and practices exercised by the board and executive management with the goal of providing strategic direction, ensuring that objectives are achieved, ascertaining that risks are managed appropriately and verifying that the enterprise's resources are used responsibly. 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