Management accounting & control
Enterprise Risk Management: Frameworks, Elements, and Integration (Statement)
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Handboek Management Accounting, 2012
As organizations grow in complexity and serve global markets, the leadership challenge is to understand fully how the various organizational units interact and relate, and, in turn, how the risks cut across the silos. Instead of managing risk in many individual silos, enterprise risk management (ERM) takes an integrated and holistic perspective on risks facing an organization. Riskcentric leadership does not mean that the organization will be risk adverse, but that it strives to identify, assess, and manage risks and, when taking risks, the leadership does so intentionally rather than unknowingly. The key is to take calculated risks across the enterprise and appropriately manage and mitigate the risks for the benefit of the stakeholders.
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