Enterprise Risk Management Essay

712 words - 3 pages

Enterprise Risk Management
in the shipping Industry

Definition fo ERM
 The process of systematically and
comprehensively identifying critical risk,
quantifying their impacts, and then
developing and implementing integrated
risk management solutions- aligning
strategy, people, processes, and
technology – to maximize enterprise value.

2

Drivers Of ERM
External developments





Trail of disasters
Heightened regulatory,
board/investor, and
accounting
requirements
Investors are more
sensitive to deviation
from earnings
expectations

â–¼

Internal demand

Legacy of crises or
near misses

Real and perceived
rise in the number
and ...view middle of the document...

System approach
- System Hazard Analysis Questionnaire
- Hazard Logic Trees
- Gross Hazard Analysis
6

System Hazard Analysis
Questionnaire
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Hazard Logic Trees

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Gross Hazard Analysis
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9

Dimensions of Exposure
SEVERITY
LOW
LOW
FREQUENCY
HIGH

HIGH

I

II

III

IV

10

Risk Management Tools
RM Tools

Risk Control

Avoidance

Separation
& Combination

Transfer

Risk Financing

Loss Control

Retention

Ransfer

Loss Prevention

Insurance

Loss Reduction

Non-Insurance

11

Risk Adminitration
 Risk Management Policy Statement
 Risk Management department
 Risk Management manuals

12

Risk Factors
Financial Risks

Strategic Risks

 Interest Rates

 Customer demand
Financial
Risks

 Currency

...

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