Enterprise risk management in banking
Enterprise risk management in banking: The implication of the term ‘Risk’ according to dictionaries is “a coincidental encounter of danger, hazard, losser harm” or “the exposure to a gamble of lessor injury”. Thus, the risk is anything that has a probability to cause lessor harm to one or more deliberate intentions. Derivation of the term is from an Italian expression, “Risicare”, meaning “To Dare”. It is a phrase usage to denote a danger of a hostile unconventionality in the definite outcome from any anticipated outcome (Barton, Shenkir& Walker, 2002).
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Management (ERM) is a procedure of handling opportunities and risks by organizing, planning, controlling activities, and leading in an institute. Enterprise Risk Management means being capable of assessing, identifying, and prioritizing opportunities and risks to increase or reduce the impacts it has on the establishment’s earnings, capital, and general goals.
Barton, T. L., Shenkir, W. G., & Walker, P. L. (2002). Making enterprise risk management pay off. Upper Saddle River, NJ: Financial Times/Prentice Hall PTR.
Beasley, M. S., Clune, R., & Hermanson, D. R. (2005). Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of Accounting and Public Policy, 24(6), 521-531.