In this SMA, techniques for identifying risks are discussed and illustrated with examples from company experiences. Once risks are identified, the next issue is to determine the root causes or what drives the risks. A suggested approach is described and followed by a discussion of several qualitative and quantitative procedures for assessing risks. Some practical ERM implementation considerations are also explored, including infrastructure and maturity models, staging adoption, the role of the management accountant, education and training, technology, aligning corporate culture, building a case for ERM, and the return on investment (ROI) of ERM. Any organization—large or small; public, private, or not-for-profit; U.S.-based or global—that has a stakeholder with expectations for business success can benefit from the tools and techniques provided in this SMA.

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