Similarities and Difference in ERM 3
Running head: Similarities and Difference in ERM in Implementation 1
Similarities and Difference in ERM Implementation
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Similarities in ERM implementation
The organizations use the ERM to mitigate risk in the organizations, and both have an elaborate system that has been set up. The ERM system helps the organizations access risk in the organization and look for the best ways to tackle the threats. The processes both point out the procedure for handling hazards such as prioritizing the risks with factors such as urgency. For the success of the business entities, it is crucial for them to elaborate on the ERM process, such as quantifying of risks. The main focal point is to present the risks that have been identified to management where deliberation is done to ensure the correct measures are taken. They also have a similarity in that they each have a process in which each risk is categorized and how the different risks are handled with the urgency in which they come. Both organizations have the methods of reporting risks from each department of the company to the top management who are the primary decision-makers and determine how best a situation can be handled in the best interest of the organization. The organizations each have a measure to ensure the reduction of risks that they face in that the process tries to ensure there is no recurring of hazards, and less the organizations also reduction of new risks occurring. The emphasis is put on the importance of ERM in the summery of each report and ways in which the organizations can take advantage of the system to take care of the risks they encounter. A notable mention is a fact that ERM helps the organizations manage all risks. Each organization had leadership that is committed to risk management, and the University of California has an officer that is explicitly set to identify risks the organization face.
Differences in ERM implementation
The two organizations have a system of implementing the ERM, though mars lack the technological aspect of performing the procedure for mitigation of risk. Technology is an essential part of everyday life, and many organizations have embraced technology because it is widely used and it brings excellent prospects for any organization in addition to making work more comfortable and minimization of error if adequately handled. The rollout of the ERMs is different because mars want to roll out their program on a global basis while the University of California is implementing the program in the institution to handle risks and it has not tried out another form of ERM other than the one it is proposing. Mars had tried to implement another type of ERM before as a try out version and settled on the current program, which they saw successful after making some adjustments. The University of California has an elaborate step of implementing the program such as defining, analyzing, controlling, and evaluating risks through rigorous identification of risk roots.
Takeaways from each ERM implementation beneficial to the organizations
Mars has implemented their ERM successfully though it lacks an aspect of technology which the University of California has clearly outlined, and it shows the importance technology has in implementation of the program. It gives a more natural way to document the risks the organization as faced and the ways future uncertainties can be handled. Mars would benefit well if they incorporated the aspect of technology in their ERM. There is utmost importance in reporting of risks to the management of the organization, and it is better to be prepared to face the management with concrete ways in which the risks can be dealt with so that they can have a base on which to make decisions. The mars ERM provides an elegant way to report the hazards and gives a step by step way through the classification of risk on the basis, such as urgency. The reporting aspect should be adopted by the University of California because it will help the organization to determine the kind of risks that need immediate handling based on the report that is provided by the relevant departments.