Enterprise risk management

Enterprise risk management (ERM) is the practices, methods, and processes adopted by organizations to manage and monitor risks. ERM is a structured process for managing various risks that can adversely impact business objectives. For effective risk management, it is important to determine an organization's appetite for risk.

Risk management process steps

Risk management is a process by means of which potential risks are identified, monitored, and managed. The following table depicts five risk management process steps:

Steps	Description
Asset identification	The first step is the identification of assets that are critical to the organization and the need to be adequately protected. Assets can be in the form of data, hardware, software, and people. Once assets are identified, they should be classified in terms of criticality and sensitivity. The purpose of classification is to prioritize the assets that need to be protected. Classification also...