The ultimate purpose of ERM is to increase shareholder value through a risk-return based strategy. I need to outline the following issues:
• Identify the various stakeholders and outline what performance measures each of these groups consider important.
• Explain why, as part of an ERM system, communicating performance measures are important.
Through ERM organisations protect and enhances the value of various stakeholders like customers, owners, employees, regulators, suppliers and society.
Following performance measures are considered important by each of these groups-
Owners are primarily concerned with the well being of the company. They want to ensure that the funds are best utilized to attain the organisational objectives and maximum rate of return are achieved through the most effective functioning of the organisation. In other words, they want best return on their investments while keeping ...
The solution discusses performance measures considered important by various stakeholders.