Which does NOT represent a step in creating an effective ERM system?

Creating an effective Enterprise Risk Management (ERM) system involves various steps that are aimed at identifying, assessing, managing, and monitoring risks. The core objective of an ERM system is to understand and mitigate risks while still pursuing the organization's strategic goals.

Eliminating all identified risks is not a realistic or attainable objective within an ERM framework. Risks are inherent in all business activities, and while organizations can strive to mitigate and manage risks, completely eliminating them is neither possible nor practical. The focus of ERM is on understanding the risk landscape, making informed decisions about risk acceptance, transfer, or reduction, and integrating risk management into the organization's overall strategy.

On the other hand, mapping inputs into a risk estimation calculation, monitoring compliance with policies and limits, and quantifying each exposure size in monetary terms are all critical components of an effective ERM system. These steps help in assessing the potential impacts of risks and ensuring that the organization adheres to established risk management protocols. Thus, the focus should remain on managing risks rather than attempting to eliminate them completely.