Success Stories: Public Entities Adopt Erm Best Practices

This book is a Six Step Approach to show how to develop and implement an Enterprise Risk Management Program within your organization. This book will cover how various public entities are addressing risk identification, risk assessment, risk analysis, implementation of their ERM program, monitoring and evaluating their ERM program. Examples are taken from public entities that are using Enterprise Risk Management in their organizations: Department of Homeland Security, Center for Disease Control and Prevention, Department of Education, University of California, State of Washington, Penn State University, British Columbia, Dallas Fort Worth International Airport, Washington State Department of Transportation, San Francisco International Airport, MassDevelopment, Dakota County, Minnesota, and Longmont, Colorado.

Enterprise Risk Management is able to improve the strategic decision making of an organization by addressing strengths, weaknesses, threats and opportunities in a way that integrates risk management and the strategic planning process.The ERM process is different because it allows organizations to establish internal and external contexts, assess risks, choose appropriate treatments, and then monitor the treatment to the organization's strategic goals. This allows all stakeholders of an organization to have a clear picture of all the risks that could impact their strategic plan within their organization. By identifying all the risks, the organization now has the ability to quantify critical risks and prioritize their risk treatment.

When threats and opportunities are understood across the organization, managers will make better decisions that in turn only improve their department's goals but also positively impact the entire organization. The benefits of implementing an ERM program within your organization include: 1) enhanced decision making 2) increased sustainability 3) reduced volatility 4) improved ability to meet strategic goals 5) increased management accountability 6) breaking silos-seeing risk from a holistic approach 7) develop business continuity.

A strong ERM program encourages the buy-in of an organization's internal and external stakeholders by establishing strategies, that protect the organization's reputation and assets. No risk management plan is perfect, but an organization that is prepared to identify, assess, analyze, implement, monitor, and evaluate all risks and is willing to work on improving those risk conditions will benefit from an ERM program