Enterprise Risk Management Summary

1. Aligning risk appetite and strategy.Management considers the entityfs risk appetite in evaluating strategic alternatives, setting related objectives, and developing mechanisms to manage related risks.

2. Enhancing risk response decisions.Enterprise risk management provides the rigor to identify and select among alternative risk responses.risk avoidance, reduction, sharing, and acceptance.

3. Reducing operational surprises and losses.Entities gain enhanced capability to identify potential events and establish responses, reducing surprises and associated costs or losses.

4. Identifying and managing multiple and cross-enterprise risks. Every enterprise faces a myriad of risks affecting different parts of the organization, and enterprise risk management facilitates effective response to the interrelated impacts, and integrated responses to multiple risks.

5. Seizing opportunities.By considering a full range of potential events, management is positioned to identify and proactively realize opportunities.

6. Improving deployment of capital.Obtaining robust risk information allows management to effectively assess overall capital needs and enhance capital allocation