The right fit: auditing ERM frameworks; Enterprise risk management reviews provide assurance that the organization has a sound b

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RELATED ARTICLE: Guiding principles for ERM Frameworks

Although they may take many forms, depending on the organization's objectives, three guiding principles are embodied in sound ERM frameworks:

* ERM practices have evolved in step with the organization's business objectives and environment, including its risk profile. The framework is thus well-adapted to the organization's distinctive business conditions, objectives, and risks.

* ERM practices are woven into all relevant areas of the organization, including policies and guidelines, and are supported by efficient tools for assessing, communicating, and monitoring risk.

* ERM practices across the organization are designed to augment each other, ensuring that groups involved in risk-related activities work toward common objectives. To achieve this level of integration, groups clearly understand each other's risk management processes, goals, and methods, as well as the accountabilities for managing risk. ERM draws on the organization's current systems and controls to support risk management.

Organizations are increasingly aware of the value that can be generated by practicing risk management. A sound risk management framework is essential to generate this value.

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