According to an iSixSigma article:
Enterprise risk management (ERM) is a framework for managing risk across an organization. It improves an organization’s ability to accept the right amount of risk to capture strategic opportunities. ERM is made up of eight components, each of which can be supported by the tools and methods of Six Sigma.
The 8 components are:
- Internal environment
- Objective setting
- Event identification
- Risk assessment
- Risk response
- Control activities
- Monitoring
- Information and communication
Each is explained alongside with the role of Six Sigma tools in each component.
*Photo from the same iSixSigma article
Good. Fantastic article to know about risk management keys. In this website they have explained in detail about the eight key components to risk management. And also they said that the ERM can be supported by the tools and methods of Six Sigma.
http://www.ermsummit.com
http://www.gsmiweb.com
This is the first time I’m seeing these kinds of numbers. Very interesting. It should have a profound impact of how we are further exposed to business operations I would think.