Chapter 3 presented the approach Mars, Incorporated used to implement ERM, and chapter 5 presented the University of California Health System’s ERM development. In what ways are the two organization’s

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1)

Implementing an ERM

Enterprise risk management (ERM) is a set of approaches that identify potential threats that can occur in an organization. It creates risks awareness to organizations ensuring that information only reaches the expected people in real-time.ERM, however, is essential in providing the required information in planning and budgeting.ERM  also makes it easy in reporting and monitoring in a business or organization and improves data classification.

The similarities of  ERM in Mars and California, Health service development is that in both Mars and California Health system, Services risk management requires a risk management strategy. ERm, however, should be a task that should be taken by everybody. Both also insist on the operations in the management of activities. Also, they ensure that there is a culture of controlled risk-taking and oversight. Through continuous improvement as both focus on evolution. The two also ensures that ERM officials work towards their goals as they conduct the surveys in risk management ( Harner, 2013).

The common differences of ERM in its implementation between Mars and the University of California health system development are that in California Health system service, there are numerous operations that aid in support of clinical programs and also dealing with a large number of the patient s every year. Mars  ERM, however, is a program concerned with risk management. This ERM, however, failed in its functionality in the Mars company due to its complexity in nature.

To implement this, ERM requires creativity in the university to manage risks that are likely to occur.ERM tools can be used in the implementation of organizations' operations and also in the implementation of a college and campus health facility like in the case of California in ERM implementation. They can be used in Mars ERM, for example, in COSO implementation (Almgren, 2014).

References

Almgren, K. (2014). Implementing COSO ERM framework to mitigate cloud computing

business challenges. International Journal of Business and Social Science, 5(9).

Harner, M. M. (2013, March). The potential cost and value of ERM. In Director Notes (The Conference Board) (Vol. 5, pp. 1-10).

2)

Within organizations for management of all risks using framework is enterprise risk management framework. This framework is introduced by Commission of Sponsoring Organizations of the Treadway Commission (COSO). By establishing and development of this framework organizations get the clear understanding and overview about the organizational risks and risk management.  In development and establishment of ERM risk framework first risk can be defined in common language. Next need to form the risk management committee with senior management for management of this framework. In development process define the clear roles and responsibilities of each team member in team like senior managers, business units, board of directors and support functions, auditors and risk management framework n developers. The important functionalities of team is risk identification, provide the priority to risk like which is low priority and which is high priority and next is the risk mitigation. Finally risk monitoring and reporting are functions of ERM framework (clearrisk, 2012).

For company growth and for detection of risks in business processes both the organizations like Mars and UC firms are using ERM framework. But usage of ERM in two organizations are different. The differences are Mars use the ERM in nonprofessional areas and UC use the ERM in auditing process, using ERM in enterprise risk analysis, Mars firm using easy technology and establish the ERM framework, while the UC established the ERM with complex technology. The health care industry using the ERM framework for detection of possible risks in health care organizations like UC and mitigation of risks in health care operations.

References

clearrisk. (2012). Establishing an Enterprise Risk Management (ERM) Framework. Available at:https://www.clearrisk.com/risk-management-blog/bid/56487/Establishing-an-Enterprise-Risk-Management-ERM-Framework-Enterprise.