Enterprise Risk Management : ERM The Proactive Management Tool : The Key Success Factor for Organization

Abstract

In a fast-moving world where there is a rapid change in Information Technology, encouraging organizations in both the government and private companies to adapt and apply their new-formed strategy to accommodate different situations. “Risk” is an inevitable matter in all these circumstances and therefore will be a subject in this article with an aim to convey the technique of managing risks in the title of “Enterprise Risk Management : ERM” by presenting its derivation, definition, conceptual framework and the benefit of managing risks in organizations. Also, an analysis of the theoretical difference between internal control and the overall risk management throughout the entire organizations, as well as the success factor in creating a risk management system. Including an analysis of the common misunderstanding in this subject to establish the right principle of risk management. All of these can be applied as one of many factors of success for organizations.