Enterprise risk

Free IMA CMA Part 2 (Strategic Financial Management) lesson in Enterprise Risk Management. 22 min read, ~3,328 words.

The five risk families are business, hazard, financial, operational, and strategic; only hazard is purely downside. Operational risk covers people, process, systems, and external events, managed with controls, training, BCP, KRIs, and RCSAs. The five risk responses are avoid, retain, reduce (mitigate), transfer (share), and exploit (accept), matched to the...