Answer the below question. APA format. 300 words. Q1) Enterprise Risk Management approach addresses the known 5 limitations of the traditional Silo Risk Management model. Select one of these limitations and explain in depth how ERM model overcomes this limitation with a practical example. • Textbook : Information Governance: Concepts, Strategies and Best Practices; John R.S. Fraser, Betty J. Simkins, Kristina Narvaez; Copyright © 2015 by John R.S. Fraser, Betty J. Simkins, Kristina Narvaez (ISBN 978-1-118-69196-0) • Beasley, M. S. (2016). What is Enterprise Risk Management? Retrieved from https://erm.ncsu.edu/az/erm/i/chan/library/What_is_Enterprise_Risk_Management.pdf Respond to below two discussions separately. APA format . 100 words each Discussion 1) In the traditional Silo Risk Management model, departments in an organization only focus on the danger involving their areas of duty without having any communication with other departments within a particular company. The calamity management in this situation is individually based (Bogodistov, & Wohlgemuth, 2017). Each silo leader has a responsibility to manage and come up with mitigation strategies to curb the risks involved in their silos. A common type of threat can affect several siloes in different ways within the same organization in the case of traditional silo risk management. Since each department works on its own, there will be miscommunication between the departments and find it easy for danger to duplicate itself (Berry‐Stölzle, & Xu, 2018). Once one leader of the silo can diagnose incoming danger and have strategies to cease it, these strategies may negatively affect the other departments of the organization leading to poor production. The main objective of Enterprise Risk Management (ERM) is to predict the threats which might occur to the business and provide the appropriate measures to mitigate the calamities. It is the responsibility of the executive to provide an appropriate design of ERM and implement the whole process. ERM process creates a collective understanding from the top management of the organization having good compliance of the policies deployed to curb the risk. From the different departments in an organization, the threat is identified, monitored, and managed effectively due to the good communication flow caused by the integration of leadership in the organization (Agarwal, & Ansell, 2016). A good example of where enterprise risk management is in learning institutions whereby the board of directors issues the policies and school rules to be adopted in the daily routine of the institution. The teachers, students, and the non-teaching staff in the whole institution follow those guidelines to achieve the set goals of the school. References Bogodistov, Y., & Wohlgemuth, V. (2017). Enterprise risk management: a capability-based perspective. The Journal of Risk Finance. Berry‐Stölzle, T. R., & Xu, J. (2018). Enterprise risk management and the cost of capital. Journal of Risk and Insurance, 85(1), 159-201. Agarwal, R., & Ansell, J. (2016). Strategic change in enterprise risk management. Strategic Change, 25(4), 427-439. Discussion 2) There are strategic risks involved in every process, here you must understand to know what is your current position in this process. Similarly, you need to see the risks involved in the silo or stove-pipe risk management process. Here are some limitations that I would like to highlight in this process. Limitation 1 – like when the silo risk leaders might miss seeing, because when there is a risk in the business, especially this would not see the business chart and move. Because risk output can be infinite and there are no limitations unless you control them at an early stage. This means the risk can fall on a horizon that does not capture anyone’s attention. Limitation 2 – some risks do affect in various ways. That means leaders of this process might see the risk and make a sufficient plan, but they might tend to lose on the significant risk to other aspects of the business verticals. Limitations 3 – in this zone, usually a traditional approach to risk management, here specially silo owners might not even know or understand how each response to a particular risk might have a bigger impact on other aspects of your business. In such situation, an owner here in silo might rationally see to decide to reply in every possible manner to few risk affecting to his or even her silo, however, in doing so, that shows might even trigger a bigger risk impact in the function that might stringent IT security protocols and so on (Beasley, 2016). Limitations 4 – here you will also see some of the focus of the traditional risk management that has an internal lens to find and also responding to their risks. There is some lens that finds out and replies to the risk. Now the management would focus on the risks which are related to all of their internal operations that are inside the walls of the entity with a lower focusing area on the risks. On the other hand, the output of the same will have a bigger impact from outside. Limitations 5 – most of the management would understand the fundamentals connection of its risk and return, now, on the other hand, multiple businesses are struggling to even connect to their risk management strategic planning. References Beasley. S. M(2016). What is Enterprise risk management? Retrieved from – https://erm.ncsu.edu/az/erm/i/chan/library/What_is_Enterprise_Risk_Management.pdf