Enterprise Risk Management (ERM) is an activity undertaken by many organizations. Jiffy Sportswear, Inc., is a...

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Enterprise Risk Management (ERM) is an activity undertaken bymany organizations. Jiffy Sportswear, Inc., is a fast growingprivately owned company that will soon issue its shares to thepublic and be subject to SEC jurisdiction. Its CEO wants toimplement a corporate wide ERM program and asks you, the CAE, tocounsel him on the following:
Explain the purpose of ERM and how it may add value to theorganization.
What is the role of internal auditing with respect to ERM?Moreover, what should internal auditing refrain from doing withrespect to ERM?
Explain the concept of risk-based auditing and how it relatesto ERM.

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Answer to 1 Enterprise risk management ERM is a process designed to anticipate and analyze potential opportunities and threats that could affect the achievement of the organizations objectives and goal This process is integral to the management and future direction of the organization and should be structured consistent and continuous across the entire organization ERM includes identifying assessing deciding on responses to and reporting on strategic human capital compliance operational financial and hazardrelated exposures These exposures include both risks that might hinder an organizations attainment of its strategic goals and opportunities that could help the organization to achieve its strategic goals Answer to 2 As the organizations risk maturity increases and risk management becomes more embedded in the operations See Answer

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