| So far, Enterprise Risk Management Applications have | | | | risks. By doing a formal analysis of these choices, the |
| been covered up to risk assessment, including how | | | | proper decision can be made by management. Once |
| Six Sigma Training can affect these applications and | | | | completed, the activity or organization can be |
| the overall process of ERM. There are four elements | | | | reassessed to determine if risks are now lowered or |
| left, which are just as important as the first in | | | | eliminated, or if further action is required. |
| effective risk management practices. These areas of | | | | Control Activities in relation to ERM can also benefit |
| ERM can all benefit from Six Sigma Tools and training | | | | from the use of Six Sigma Tools. After all, the |
| in their own ways. Ultimately, the use of Six Sigma | | | | concept of one process owner having the support of |
| Tools to quantify risks and objectives becomes most | | | | a process control system is based in the Six Sigma |
| important and offers more productive processes | | | | Program. This person is responsible for monitoring and |
| than traditional methods which relied on qualifying | | | | managing the process to keep the risk level down |
| risks, which was highly subjective. | | | | and ensure things work properly. Control activities |
| Risk Response is the next element of ERM that | | | | include policies and procedures, information |
| needs to be discussed. Once Six Sigma Training is | | | | processing, and activity management, and need to be |
| applied to risk assessment to come up with a Risk | | | | quantified in order to best evaluate them. Using Six |
| Priority Number, or RPN, an action plan needs to be | | | | Sigma Tools, these relationships between data and |
| developed. This plan includes assigning responsibilities | | | | various control activities can enhance awareness of |
| to reduce risks in the areas that were previously | | | | potential risks and help to eliminate them. It can also |
| identified as high priority. There are four choices | | | | allow for investigations into unusual circumstances or |
| when it comes to dealing with risks: prevention, | | | | results that are not typical. |
| reduction or mediation, sharing risks, and accepting | | | | |