ISSN 2348-1196 (print) International Journal of Computer Science and Information Technology Research ISSN 2348-120X (online) Vol. 9, Issue 4, pp: (4-9), Month: October - December 2021, Available at: www.researchpublish.com
Enterprise Risk Management Success Story Fahad Saleh Sabeela Saudi Aramco, Dhahran, Saudi Arabia
Abstract: This paper will explore the overall concept of Enterprise Risk Management (ERM) framework, and the journey undertaken to manage and eliminate the level of risks in an organization. Keywords: Risk, Enterprise Risk Management (ERM) Framework, Objectives, Control Framework, Risk Assessment, Six Step Risk Management Process, OE Model, OE Risk Management Process.
1. INTRODUCTION Risk is a future event with the ability to impact the organization’s mission, strategic and business plans, projects, routine operations, processes, objectives, assets, reputation or the delivery of stakeholder expectations. Risk management reduces and controls the impact of undesirable events. Applying sound risk-based assessment and management proactively addresses and mitigates business threats. This is an executive summary of the success story of the execution of Enterprise Risk Management (ERM) Framework in our organization. The execution structure is decentralized where many entities are contributing in the success of the execution and continues improvements. For instance, we have the Corporate ERM Team which is responsible for developing and maintaining ERM Framework to support Business Risk management functions, this include developing the Corporate-level policies, Procedures, Methodologies, Enterprise Risk Management System Support and Training. This team is reporting to the Head of Risk in our organization. In addition to that, we have executed the Operational Excellence (OE) framework in our organization, The Operational Excellence (OE) is an overarching framework that integrates many existing management systems and best practices to consistently and systematically achieve and sustain industry leading performance in terms of Reliability, Efficiency, Cost Effectiveness, and Profitability. The goal of OE is to optimize our Organization’s processes to deliver a more agile, flexible and efficient company. OE framework provide a structured approach to achieve and sustain Excellence in all dayto-day activities in each and every department in our organization. OE Risk Management (RM) Process document has been developed and added to OE processes Manual to ensure the effective execution of the risk management framework. OE RM process document outlines the minimum expectations for all departments in the organization aligned with the Enterprise ERM Corporate Policy and ERM General Instruction (GI). OE RM Process, used to support ERM activities associated with the Corporate Risk Assessments. The process contains guidance and recommendations on ERM activities that are intended to continuously improve the implementation of the Six Step Risk. OE Department is the organization responsible to assess all Departments’ compliance with Operational Excellence Risk Management Process as part of the Operational Excellence Corporate Assessment process in addition to that report at least annually to the Head of Risk the systemic gaps and recommendations for corporate wide improvement relevant to Operational Excellence Risk Management Process. Furthermore, Management and Organization Heads play a key role to ensure the effective implementation of the risk management framework, they are responsible for: Identify and assess the organization’s major risks and document them in the Risk Management System in accordance with the Six Step Risk Management Process. Review the risks identified by the organization at least quarterly, at least annually, and ensure Risk Owner and Risk Champion assignments are appropriate for the efficient and effective management of the risk. Escalate risks that the organization determines would benefit from oversight by a higher-level.
Page | 4 Research Publish Journals