Enterprise Risk Management Arguments for ERM ) Process provides managers with a better understanding of the firm's risks Many of the reasons for managing risk suggest looking at an aggregate performance measure(e.g, cash flows) Arguments against ERM )Too costly to implement3 Enterprise Risk Management ◼ Arguments for ERM: Process provides managers with a better understanding of the firm’s risks Many of the reasons for managing risk suggest looking at an aggregate performance measure (e.g., cash flows) ◼ Arguments against ERM Too costly to implement