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An enterprise risk assessment (ERA) is a systematic and forward-looking analysis of the impact and likelihood of potential future events on the achievement of an organization’s business objectives within a stated time horizon. An effective risk assessment process lays the foundation for management to respond confidently as the business environment remains in a constant state of flux. It also instills confidence in the board that management has a substantive basis for operating in a risk-filled environment.

In today’s world of evolving technologies and businesses, companies are taking on increasing levels of risk. This initiative has increased companies’ needs to employ appropriate Enterprise Risk Management (ERM) tactics in order to monitor and manage risk at the proper levels. In a world of do more at a faster pace, it is important for companies to manage their activities in a manner that can allow them to align risk strategies with overall risk management and internal control activities. Inability to do this may put the company at risk for not being able to meet strategic objectives.

We will explore a four phase process in developing a holistic enterprise risk assessment that is sustainable for any organization. The process is outlined in four stages:

  • Phase One - Foundational Stage – Establish the structure
  • Phase Two - Risk Identification (ID) & measurement
  • Phase Three - Risk mitigation and management
  • Phase Four - Reporting

Each phase is critical to successful completion and ongoing execution of an Enterprise Risk Assessment. Within each phase we will discuss the most important elements to establish to ensure the phase is properly executed and the organization is ready to move on to the next phase.  

Learning Objectives

  • Discover the important concepts of an enterprise risk assessment (ERA)
  • Discover how to develop the right size Enterprise Risk Management (ERM) program to meet company objectives for any organization.
  • Discover how to develop proper risk measurement scales, including risk appetite, risk tolerance and likelihood.
  • Identify the proper risk measurement factors for operational, compliance and financial risks.
    • Explore how to utilize a maturity model matrix approach in assessing risk.
  • Explore varying reporting protocols for an enterprise risk assessment.
Last updated/reviewed: November 19, 2019

4 Reviews (26 ratings)Reviews

3
Anonymous Author
Liked: the definitions and nuances provided with respect to tolerance vs appetite, ways to assess likelihood vs impact, etc. Disliked: not very advanced class, so not that helpful for someone who has risk or internal audit experience.
4
Member's Profile
Very useful as I'm about to embark on a revamp of our annual IA risk assessment process while also performing an ERM maturity review.
5
Anonymous Author
Content clearly presented. Concepts supported with practical examples.
5
Member's Profile
Excellent course. Provided good knowledge base of risk assessment.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  9:07Introduction to The Enterprise Risk Assessment Process
  9:51Concepts of Era and Right-Sizing
  8:45Risk Identification
  26:27Risk Identification Continued
  5:32Risk Rating Using Appetite:Tolerance
  6:34Risk Rating Using Appetite:Tolerance Continued
  8:50Keys to Risk Appetite and Tolerance
  5:15Roles and Responsibilities & Summary
CONTINUOUS PLAY
  1:20:21The Enterprise Risk Assessment Process
SUPPORTING MATERIALS
  PDFSlides: The Enterprise Risk Assessment Process
  PDFThe Enterprise Risk Assessment Process Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM