What is the key difference between Traditional Risk Manageme…
What is the key difference between Traditional Risk Management (TRM) and Enterprise Risk Management (ERM)? With Traditional Risk Management = *Answers got cut off below – so here is the complete sentence for each: Each department is responsible for conducting the risk management process for the risks that fall under that department’s domain The CEO has the final say on the actions taken to manage the organization’s risks, regardless of which department those risks fall under The entire organization is responsible for conducting the risk management process of the firm, regardless of what domain the risks fall under; usually lead by either a Chief Risk Officer or Risk Manager Only focuses on Operational Risks, as that was historically the largest source of potential risks 50 years ago Whereas, with Enterprise Risk Management = *Answers got cut off below – so here is the complete sentence for each: Each department is responsible for conducting the risk management process for the risks that fall under that department’s domain The CEO has the final say on the actions taken to manage the organization’s risks, regardless of which department those risks fall under The entire organization is responsible for conducting the risk management process of the firm, regardless of what domain the risks fall under; usually lead by either a Chief Risk Officer or Risk Manager Only focuses on Operational Risks, as that was historically the largest source of potential risks 50 years ago