Below are three student posts reply to each of them in 125 words.
satya-ERM in Higher Education and Public Company
The type of risks in the modern world has continuously evolved due to various technological advancements making enterprise risk management an essential tool. Usually, risk management entails analyzing, addressing and understanding various risks to ensure an entity achieves desired objectives. ERM is a joined and integrated technique that manages all types of risks aiming to maximize opportunities and threats of an organization. However, the implementation of ERM differs in various sectors. The two typical areas to consider is the higher education and public company.
Enterprise risk management in higher education and the public company sector differs significantly. Both sectors use ERM to reduce risks. However, ERM functionality in both fields is different. In the education sector, the strategy operates differently in each department. The education sector such as colleges and universities, has various departments that have different missions and goals (Kenwood & Rafferty, 2017). Thus, for ERM implementation to succeed it must analyze all departments and work according to their objectives.
In contrast, in the public company sector, ERM focuses on the entire organization because the whole company has one specific mission and goal. Thus the adoption and implementation of enterprise risk management is never divided. Notably, the primary purpose of the public company is to make profits. These companies can indulge in any activity to minimize potential threats as they increase profits.
Walmart, for instance, has embraced enterprise risk management in its operations. Walmart concentrates on identifying and mitigating risks and taking appropriate action plans. Moreover, Walmart conducts performance metrics to analyze potential risks (Mazouni, 2018). All these strategies aim to maximize total earnings. Unlike ERM in Walmart that focuses on profits, the education sector such as university will adopt ERM to sustain high academic levels, solidify the reputation and manage resources.
pra-Indeed there is a huge difference between ERM implementation and adoption in Higher education and the public company sector. First the public company sector is definitely a profit making organization which definitely will be having different goals from higher education institutions (Fraser, 2015). This therefore forms the basis of why adoption and implementation will completely be different between the two orgniozations.as much as both organizations will utilize both process and the functionality of ERM, there is complete difference between the tow and this cannot be taken for granted even if they are not utilizing ERM framework.
One of the major companies that used ERM framework is Walmart stores Inc. This prestigious company created a five step ERM process that is strictly followed so as to manage any risks that come up within the organization (Atkinson, 2016). Comparing this company and Higher education institutions for example such as the University of Washington, there is a clear difference between the two. The public company is determined to make profit and improve so that it can be able to achieve financial goals and objectives. Therefore, colleges and universities will perceive themselves being different from this profit making organizations.
Another difference is about management. In the colleges and universities, major decisions are made by the board and there has to be an understanding for all the team whereas in the profit organizations, decisions are made by the person who in charge who gives out instructions and they are and adopted by all. Another difference is that the goals that are used to drive higher education are different when they adopt ERM processes (Ariff, Zakuan, Tajudin, Ahmad, Ishak & Ismail, 2016). ERM is used to create an environment whereby the organization can be able to manage risks in time so that it can be able to achieve the desired expectations of the university.
prave-When it comes to ERM, trying to compare the higher education environment to a for-profit business is like comparing apples and oranges. Yes, apples and oranges are but part of the fruit family that is pretty much where the similarities end. The same can be said for the higher education environment and a for-profit business. They both might utilize ERM their processes and functionality are completely opposite. The biggest are that sets these two types of environments out within their respected ERM models is the way each environment works.
In the higher education environment (let’s say a university) each department is going to have its own mission statement and goals. Our textbook states, ” Colleges and universities have often perceived themselves as substantially different and separate from other for-profit and not-for-profit entities, and the outside world has historically viewed and treated them as such. Colleges and universities have been viewed as ivory towers, secluded and separated from the corporate (and thus the federal regulatory and, often, legal) world.” (Fraser, Simkins, & Narvaez, 2015).
In the for-profit business environment is mainly governed by one mission statement and one goal and that’s normally to make money. Major decisions are usually made from the head of the company and implemented and adopted by all.
Why is culture important to consider when implementing ERM?
Culture is an important part when implementing ERM because it helps when decision times comes. While diversity is a strong part any business the way things are implemented can help or hinder the future of the company.