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FINANCIAL MANAGEMENT
Final Report
ENTERPRISE RISK MANAGEMENT
Submitted By: GEETA KHIANI
ABSTRACT
Risk is inherently, not a bad thing while it may keep management awake at night, profit
would not be possible without it.
The main concern of this Research report is Enterprise Risk Management-which is broadly
characterized as system of managing risk across an entire company. This report includes
the foremost explanation on Enterprise Risk Management, its importance in business
finance, along with the risk and its implications in businesses and in turn it is focusing on
ERM significance overseas in comparison with Pakistan to have a clear depiction of the
implementation if any, its outcomes and the development. The report contains the findings
from different sources, mostly from articles.
CONTENTS
Page no.
1. Introduction 4
2. ERM-Integrated Framework 6
3. Driving forces behind ERM 9
4. ERM in Financial Services Industry 11
5. Introduction to Risk 13
6. Internal and External factors of Risk 16
7. Risk Management 20
8. Analysis of Risk Management in Foreign
Countries and Pakistan 24
9. Conclusion 29
10.Biblography 30
INTRODUCTION TO
ENTERPRISE RISK MANAGEMENT
The traditional risk management approach has been characterized as a highly
disaggregated method of managing firm risks. Under this approach, various categories of
risk are managed in separate units within the firm. Financial firms often manage market,
credit, liquidity, and operational risk separately in individual risk silos. Traditionally,
non-financial firms have followed a similar approach to hazard, financial, operational, and