Abstract
In this document, we examine two different organizations. We aim at determining several strategies to mitigate the credit or operational risk in each organization. For each firm, we describe the recommended strategy and discuss the position of the firm. A risk is a potential negative impact to an asset which can occur; it is also defines as a probability of a loss or a threat to an organization. The ERM (Enterprise Risk Management) could be defined as the sum of all proactive management directed identification, analysis and economic control. The enterprise risk management is the fact that companies realize the existence of such risk and decide to take this factor into account when implementing their business. Thanks to ERM, companies allow them to conduct their activities in a changing and complex competitive environment; to react quickly and correctly to constantly changing conditions; to help owners, the board and management deal with risks in all aspects of operations. The effect of the enterprise risk management is to increase confidence of all business partners, shareholders and co-workers in the company: that is why it offers such a good competitive advantage. Indeed, the ERM impacts the company's management through a wide point of view horizontally: across all operations of an organization which deals with speculative and pure risks, and vertically, from the strategic level, thanks to the management team, which gives objectives to the front-line employees.
