Advertise
Resources
Member, Beacon International Group, Ltd.
NEW YORK--The International Federation of Risk & Insurance Management Assns. Inc. released Thursday best practice guidance on how businesses can use enterprise risk management to meet their objectives.
The New York-based federation approved the guidance at an April board meeting after a two-year strategic review to help position it as an active partner in global risk management, IFRIMA said in a statement on the position paper.
Having decided not to publish an international risk management standard because of the number of standards that already exist, IFRIMA opted to issue a document outlining best practice guidelines for enterprise risk management.
The paper recommends that companies look at developing risk management policies and activities in three areas: the contribution of risk management to the overall business objectives of the organization, corporate governance and protection from adverse events.
It also advises companies to follow a five-step process that would involve identifying risks; developing and implementing risk mitigation strategies; managing residual risk through insurance, hedging or other techniques; reporting risk and monitoring risk.
"It is time to get risk professionals in charge of mitigating the risks they are trained to identify and thereby leverage opportunities that benefit the whole of the company," commented IFRIMA President Susan Meltzer in the statement.
The paper is available at www.ifrima.org.