AFM479 Lecture Notes - Lecture 3: Project Risk Management, Enterprise Risk Management

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM479
• Professor: John D'Amato

Document Summary

Managing strategic risk: company strategy needs to be check ed, but it can only be managed effectively if the management structure for monitoring and tackling strategic risks exists in the first place. Major steps of project risk management: risk assessment, risk identification, risk analysis. Quantitative analysis: risk management plan, risk response, risk control, risk monitoring, monitoring of the risk management plan, controlling effectiveness, communication. Risk appetite: is not static and is dependent on a firm s risk culture. Enterprise risk management: a systematic approach to managing risk, which means that risk factors and mitigation programs must be considered on a business -wide basis, internally and externally. Erm framework: four objectives and eight components for management processes to achieve each objective.