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LEGO group integrated ERM with strategy and strategy executions. Despite the fact that strategic risks should be incorporated with risk management, numerous associations don’t expressly evaluate and oversee strategic risks inside strategic decision-making procedures and strategy execution. But integration gives the desired results. One major advantage of integration is that the integration elevates the value of ERM in an organization. Integration increases productivity and efficiency (Fraser, Simkins & Narvaez, 2014). LEGO Group’s four steps for developing its risk management enterprise risk management, Monte Carlo simulations, Active risk and opportunity planning (AROP) and Preparing for uncertainty.

Enterprise risk management helps management with the arrangement of risk hunger and corporate methodology, improves the process for risk recognizable proof, estimation, and management, upgrades the capacity to take advantage of lucky breaks, and improves the sending of capital. All organizations have some type of risk management exercises set up. However, these exercises maybe, best case scenario casual and at the very least absolutely undocumented, awkward and skewed with the general methodology. More noteworthy straightforwardness into how a company deals with its risk is being requested by board individuals, senior management and administrative bodies.

The usage of ERM is a transformative process that will keep on improving after some time. The ERM process not just helps the company in mapping risks to fundamental business goals, however it likewise gives management a chance to audit its current risk management rehearses, surveys the ampleness of those practices, recognizes territories of solidarity and shortcomings and executes activity intends to improve or upgrade controls. As organizations move away from storehouse based ways to deal with a more enterprise-wide view the information picked up from an intensive audit of existing risk management exercises will assist management with evaluating associations between existing processes and distinguished risks, and will likewise feature holes in the process (Latilla, 2011).


Fraser, J.Simkins, B.& Narvaez, K.(October 27, 2014). Implementing Enterprise Risk Management: Case Studies and Best Practices. USA: John Wiley & Sons

Latilla. (2011). 8 step guide to implementing ERM [PDF file]. Retrieved from http://www.latilla.com/uploads/1/2/2/9/12296845/8_…

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