Therefore, the components are also criteria for effective corporate risk management. For the components to be present and functioning properly there can be no material weaknesses and the risk must be included in the entity's risk appetite.3. Casualty Actuarial Society Framework In 2003, the Casualty Actuarial Society (CAS) defined ERM as the discipline by which an organization in any industry assesses, controls, exploits, finances and monitors risks from all sources for the purpose to increase the organization's short- and long-term risks. long-term value for its stakeholders. The CAS conceptualized ERM as proceeding through the two dimensions of risk typology and risk management processes. Risk types and examples include: · Hazard Risk Liability, Property Damage, Natural Catastrophe · Financial Risk Price Risk, Asset Risk, Currency Risk, Liquidity Risk · Operational Risk Customer Satisfaction, Product Failure, Integrity , reputational risk; Domestic poaching; Knowledge