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
