Report on an understanding of the article
Introduction
Enterprise-wide management refers to a structured, steady, together with the uninterrupted procedure for selecting, evaluating, as well as, reporting opportunities together with threats that impact the accomplishment of the firm’s goals. The following is a report on ERM from the article titled “Role of Internal Auditing in ERM” in a company.
Body
From the article, ERM has multiple benefits for the company. First is a high probability of accomplishing set goals, reporting different risks, and enhancing comprehension of main risks at board level, among many more. The board of the company is enriched with all the responsibilities of ensuring proper management of any threats. The requirement of this board is to be assured that the elements of the risk management processes happen accordingly and that the main threats in a firm get managed within that acceptable level.
Some of the activities incorporated in ERM are the communication of company goals, finding out the firm’s risk appetite, creating a reliable internal surrounding like a risk management structure, choosing and executing responses to threats, taking control, and other response happenings.
The primary function of internal auditing concerning ERM is to deliver objective assurance to the board on the necessary efficiency of risk management. From the board of directors and internal auditors’ sides, the most critical sections of internal auditing include giving an objective assurance that main business risks are under control. The other way is to assure that the administration and internal control structure is working correctly.
Conclusion
From above, ERM is critical to all firms as every company wants to achieve its objectives. Companies handle risks effectively through ERM. Further, internal auditing helps in assuring that this ERM is working effectively in the firm.