What is Enterprise risk management?
By Haresh Ratnagrahi, Founder, HiPrep (CPA, FCA, CMA (US), CISA, CRISC)
Definition
A process for identifying, assessing and responding to risks across an organisation so that it can pursue its objectives.
Where Enterprise risk management matters
CPA (US): The global gold standard for accounting and audit. 4 Exams: 3 Core + 1 Discipline; 4 hrs Per section; 75 Passing score (0–99 scale); Prometric Test centres worldwide. Parts: FAR Financial Accounting & Reporting; AUD Auditing & Attestation; REG Taxation & Regulation.
CMA (US): The credential for management accounting and finance leadership. 2 Exam parts; 4 hrs Per part: 100 MCQs + 2 essays; 360 Passing score (0–500 scale); 3 yrs To complete both parts from your first. Parts: Part 1 Financial Planning, Performance and Analytics; Part 2 Strategic Financial Management.
Enrolled Agent (EA): The fastest route to practising US tax. 3 Exam parts (SEE); 3.5 hrs Per part: 100 MCQs; 105 Passing score (40–130 scale); 2 yrs To pass all three parts. Parts: Part 1 Individuals; Part 2 Businesses; Part 3 Representation, Practices and Procedures.
Related terms explained
CMA Part 2: Strategic Financial Management: financial statement analysis, corporate finance, decision analysis, risk, investment decisions and ethics.
Internal control: The policies and procedures that help an organisation protect assets, produce reliable reports and follow rules. Auditors assess it as part of risk assessment; COSO is the common framework.
How HiPrep teaches it
In HiPrep, Enterprise risk management is taught concept-first and then practised in a Prometric-style simulator. Every answer is built step by step so you see how a result is reached, explanations are available in English, Hindi, Tamil, Telugu and Kannada, and a mentor is behind the platform for doubts. Start with the free diagnostic to see where Enterprise risk management sits in your plan.