Fundamentals of Risk Management

www.ready.gov
website uses the words 
planning, implementation, testing & exercises and program improvement, but
describes the same methodology. Whatever the precise words used to describe the 
four steps, the approach described in this appendix has widespread acceptance.
Many acronyms are used in this book and these are referenced in the table below 
to show where they fit into the overall implementation of risk management in
general, and ERM in particular. In addition to identifying the acronyms relevant
to each step, the table also provides reference to the relevant chapters of the book 
where further information can be found.
The steps set out below relate to the implementation of an overall enterprise risk 
management initiative. Much of this book is concerned with the implementation
of risk management in relation to specific individual risks. ERM is the overall
philosophy that consolidates the management of individual risks into a unified
and consistent approach to risk across the whole enterprise.
446

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Implementation guide
447
activity
Concepts/tools and 
techniques
acronym references
Planning/implementing
1.
Identify intended benefits 
of the ERM initiative and 
gain board support
Business model
Risk appetite
Corporate governance
CORR
ERM
MADE2
Chapter 5
Chapter 6
Chapter 7
Chapter 8
2. Plan the scope of the ERM 
initiative and develop 
common language of risk
RM context
Upside of risk
Stakeholder expectations
PACED
8Rs
Chapter 5
Chapter 7
Chapter 14
Chapter 29
3. Establish the RM strategy, 
framework and the roles 
and responsibilities
Risk management manual
Risk architecture
Level of risk maturity
RASP
4Ns
FOIL
Chapter 6
Chapter 21
Chapter 22
Chapter 24