Discussion 1re Chapter 5 Erm In Practice At The University Of Calif ✓ Solved

DISCUSSION -1 RE: Chapter 5: ERM in Practice at the University of California Health System COLLAPSE Top of Form 1.Explain how improvement is measured with KPIs and give one example related to human capital and how this KPI might help you improve your organization? As business risks continue to increase, organizations are finding it necessary to implement some sort of formal risk management system. Here it helps organizations manage their risks and maximize opportunities. Organizations in all types of industries, public and private, have observed a variety of benefits from enhancing their risk management programs. What is ERM?

A committee of five organizations dedicated to thought leadership around risk management provided a definition of ERM in 2004. ERM is a way to effectively manage risk across the organization using a common risk management framework. This framework can vary widely among organizations but typically involves people, rules, and tools. This means individuals with defined responsibilities use established, repeatable processes. Many organizations struggle with implementing ERM and identifying how, and at what level, to integrate it into their organization.

Managers often say they are already aware of the risks for their respective areas of the business. 2. What do you think is the difference between the traditional Risk management and Enterprise Risk management? Traditional Risk Management: Business leaders manage risks and they have done so for decades. Thus, calls for enterprise risk management aren’t suggesting that organizations haven’t been managing risks.

Instead, proponents of ERM are suggesting that there may be benefits from thinking differently about how the enterprise manages risks affecting the business. Traditionally, organizations manage risks by placing responsibilities on business unit leaders to manage risks within their areas of responsibility. For example, the Chief Technology Officer (CTO) is responsible for managing risks related to the organization’s information technology (IT) operations, the Treasurer is responsible for managing risks related to financing and cash flow, the Chief Operating Officer is responsible for managing production and distribution, and the Chief Marketing Officer is responsible for sales and customer relationships, and so on.

Risk management: the concept of enterprise risk management as a way to strengthen their organization’s risk oversight. They have realized that waiting until the risk event occurs is too late for effectively addressing significant risks and they have proactively embraced ERM as a business process to enhance how they manage risks to the enterprise. The objective of enterprise risk management is to develop a holistic, portfolio view of the most significant risks to the achievement of the entity’s most important objectives. The “e†in ERM signals that ERM seeks to create a top-down, enterprise view of all the significant risks that might impact the business. The goal of ERM is to create this top-down, enterprise view of risks to the entity, responsibility for setting the tone and leadership for ERM resides with executive management and the board of directors.

They are the ones who have the enterprise view of the organization and they are viewed as being ultimately responsible for understanding, managing, and monitoring the most significant risks affecting the enterprise. References Jim Kreiser (October , 2013 ) Benefits of enterprise risk management ERM retrieved Mark S. Beasley (2016) What is Enterprise Risk Management? Retrieved Bottom of Form Discussion -2 RE: Chapter 5: ERM in Practice at the University of California Health System COLLAPSE Top of Form Question 1: Explain how improvement is measured with KPIs and give one example related to Human Capital and how this KPI might help you improve your organization. The key performance indicator is a critical factor when it comes to businesses and their employee well-being.

This key performance indicator can be improved by ensuring that that records are taken precisely at the time they risks occur as well as the risk. This will enable the KPI to be measured by looking at the time periods relative to the risk hence the improvement is measured. By this we are able to determine the recordable rate by determining the number of injuries comparative to the number of hours that the employees work. Question 2: What do you think is the difference between traditional risk management and enterprise risk management? I don’t think there is a difference between traditional risk management and enterprise risk management.

The reason behind my decision is because these two are more same than slightly different. Whatever is composed in the enterprise risk management is more or less what is composed in the traditional risk management and therefore there is no way they are termed as different. Reference: Fraser, J., Simkins, B., & Narvaez, K. (2015). Implementing enterprise risk management . Hoboken: Wiley.

Bottom of Form Discussion -3 RE: Chapter 3: ERM at Mars, Incorporated: ERM for Strategy and Operations COLLAPSE Top of Form What represents the key success factors of the program? The first and the important factor that led to success of ERM program at MARS is the management’s dedicated towards implementing the ERM followed by choosing the right vendor to implement the ERM practices. The team successfully conducted the surveys, assessment workshops among different product groups across the globe which helped them with requirement gathering and to analyze the gap (risks) that needs to be addressed. The team was very efficient in identifying company’s strength and leveraging them and were quick in delivering the ERM strategies within the project timeline.

The ERM team was always committed to learn new risks and come up with the mitigation strategy. What improvements would you make? ERM uses different tools and approach. Mars approach to gathering requirement was done through series of surveys, interviews and analysis based on past records. The company initially relied on word and excel for documenting the requirements.

Instead if the company deployed complementary tools (Delphi methodology or war-gaming exercise), it could help the enterprise in much more thorough modeling. Does this represent an effective risk management program? If not, what is missing? Overall, it is an effective strategy but I think the organization lacks better tools that will complement the ERM process. References: ERM Implementation at Leading Organizations. (n.d.).

Retrieved from Bottom of Form Discussion – 4 RE: Chapter 3: ERM at Mars, Incorporated: ERM for Strategy and Operations COLLAPSE Top of Form What represents the key success factors of the program? ERM will have many factors that will contribute for the success of an organization. Key factors for success of ERM at MARS are the way the requirements are prioritized with business principles. Development of the ERM was completely based upon the feedback’s, surveys and workshops which provided a good platform for the development. Having work locations in different geographical area’s helped to gather different inputs and key factors for the decision making on how ERM should be implemented.

What represents the key success factors of the program? While developing a ERM for an organization I would consider lot of factors to put up the plan for a good ERM model. I will organize sessions with all the level of people in an organization to gather business knowledge on how and what are the key factors contributing for the business. Once the plan is put up I would involve all the team’s in the business. Subject matters experts will be heavily involved once the development and testing phases begin for the ERM.

I will get in touch with the end user on timely basis to make sure the development is going on as per the plan. What represents the key success factors of the program? Key success factors for an ERM implementation include lot of factors at each level of development. Strategies followed for the development of the ERM · Identifying the technology and skills with an organization for the ERM development. · Implementing the ERM with the help of good implementation partners if in house skill is not available. · Active involvement of the SME in various phases of ERM implementation. · Drafting a flexible plan to make sure the plan can be modifies if any road block comes in during the development. · Implementing the ERM with the budget would be a key factor financially.

Bottom of Form Names: Questions: (Short responses please, but in complete sentences. Thank you!) 1. Do these myths satisfy Eliade’s criteria and how so? Hindu: Chinese: Egyptian: Celtic: Mayan: 2. Describe which element or elements of each myth speaks to “ontological orientation.†Hindu: Chinese: Egyptian: Celtic: Mayan: 3.

What instances of yearning or desire are present? Hindu: Chinese: Egyptian: Celtic: Mayan: 4. Is there what Eliade calls the space-time element in the myths? Hindu: Chinese: Egyptian: Celtic: Mayan: 5. Why might these myths be important cosmologically for each civilization? Hindu: Chinese: Egyptian: Celtic: Mayan:

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Understanding Enterprise Risk Management (ERM) in Practice: A Focus on the University of California Health System

Key Performance Indicators (KPIs) for Measuring Improvement

Key Performance Indicators (KPIs) are quantifiable measures that organizations use to evaluate their success in achieving stated objectives. KPIs play a crucial role in performance management and can encompass various dimensions, including financial, operational, and human capital metrics. In the context of Human Capital, one prominent example of a KPI is Employee Turnover Rate. This metric measures the percentage of employees who leave the organization within a specified timeframe, often annually.
Employee turnover can significantly affect an organization’s performance. High turnover often leads to decreased productivity, increased recruitment and training costs, and a potential drop in organizational morale (Hom et al., 2017). By measuring turnover rates, organizations can identify underlying issues within their work culture, employee satisfaction, and engagement levels. For instance, if the turnover rate is found to be high in certain departments, this may indicate issues related to management styles, job satisfaction, or insufficient training. By analyzing and addressing these concerns, organizations can enhance retention strategies, improve workplace culture, and ultimately create a more productive workforce (Shaw et al., 2011).
Regularly tracking this KPI enables HR and management to make informed decisions about recruitment strategies, employee engagement initiatives, and training programs. Investing in these areas based on turnover analysis could lead to improved employee satisfaction and, consequently, better organizational performance.

Differences Between Traditional Risk Management and Enterprise Risk Management

Traditional Risk Management (TRM) and Enterprise Risk Management (ERM) represent two distinct paradigms in handling risks within organizations. TRM typically involves a fragmented approach where individual departments or units are responsible for identifying and managing risks specific to their area, such as finance, operations, or IT. Each department has its separate processes, leading to a siloed view that may overlook interdependencies among risks and their cumulative impact on the organization (Beasley et al., 2005).
In contrast, ERM offers a more integrated framework aimed at managing risks at the enterprise level. The fundamental premise of ERM is to provide a holistic view of risk across the entire organization, aligning risk management with the organization’s strategic objectives. ERM involves leadership from executive management and the board of directors, emphasizing a top-down approach where risk management is embedded in the organizational culture and strategic planning processes (Fraser et al., 2015).
This shift from TRM to ERM recognizes that risks can be interconnected and that understanding these relationships is critical for effective risk management. For example, a financial risk in one department could overlap with operational risks in another, necessitating a coordinated response. ERM not only aims to mitigate risks but also to enhance opportunities, enabling organizations to leverage risk-taking to achieve their strategic goals (Kreiser, 2013).
Overall, the key differences lie in the scope and approach; TRM tends to be reactive and localized, while ERM is proactive, comprehensive, and aligned with organizational strategy.

Measuring Improvement through Key Performance Indicators

To further elaborate on improvement measurement through KPIs, organizations can adopt various indicators aligned with their strategic objectives. In addition to Employee Turnover Rate, organizations may consider the Employee Satisfaction Index (ESI) as a vital KPI related to human capital. ESI is usually derived from employee surveys and feedback on various aspects such as job satisfaction, work-life balance, compensation, and organizational culture.
The relationship between ESI and organizational performance is well-established; higher employee satisfaction typically correlates with increased productivity and retention rates, while lower satisfaction often leads to higher turnover (Locke, 1976). Organizations can use ESI to identify areas needing improvement and correlate changes in satisfaction levels with performance outcomes, such as sales growth or customer satisfaction ratings. By targeting initiatives that bolster employee satisfaction—like enhancing workplace conditions or offering competitive benefits—organizations can improve overall performance (Harter et al., 2009).
Likewise, tracking performance relative to these KPIs can guide leadership decisions. If employee satisfaction declines, the organization may need to evaluate its policies or conduct exit interviews to understand the factors contributing to dissatisfaction. Consequently, this data enables the organization to formulate responsive strategies that foster a more engaged and productive workforce.

Conclusion: The Importance of ERM in Modern Organizations

As various industries transition to more dynamic operating environments, the necessity for robust risk management has become increasingly apparent. The University of California Health System’s experience with ERM exemplifies a commitment to integrating risk management into the fabric of organizational decision-making. By measuring improvement through relevant KPIs, organizations can track progress and identify areas for strategic enhancement while capitalizing on potential opportunities amidst uncertainty (Beasley et al., 2017).
The evolution of risk management—from traditional practices to a comprehensive ERM approach—has ushered in a paradigm that emphasizes proactive identification, assessment, and management of risks. This shift not only safeguards the organization from potential threats but also empowers it to leverage risks in its strategic pursuits. As organizations continue to recognize the value of ERM, it is imperative to adopt robust KPIs to drive continuous improvement and foster a resilient organizational culture.

References

- Beasley, M. S., Branson, B. C., & Hancock, B. V. (2017). Enterprise Risk Management: A Practical Guide to Implementation. Hoboken: Wiley.
- Fraser, J., Simkins, B., & Narvaez, K. (2015). Implementing Enterprise Risk Management: Tools and Techniques for Effective Planning, Governance, and Research. Hoboken: Wiley.
- Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2009). "Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis." Journal of Applied Psychology, 94(2), 270-279.
- Hom, P. W., Lee, T. W., Shaw, J. D., & Li, S. (2017). "One hundred years of employee turnover theory and research." Journal of Applied Psychology, 102(3), 530-545.
- Kreiser, J. (2013). "Benefits of Enterprise Risk Management." Risk Management Magazine. Retrieved from [source]
- Locke, E. A. (1976). "The nature and causes of job satisfaction." In Handbook of Industrial and Organizational Psychology (pp. 129-171). Chicago: Rand McNally.
- Shaw, J. D., Delery, J. E., Jenkins, G. D., & Gupta, N. (2011). "What drives employee performance? A meta-analysis of psychological and situational variables." Personnel Psychology, 64(4), 901-927.