ERM is NOT rocket science
The vast majority of you are good risk managers, both professionally and personally. Risk management is one of the oldest trades, often intuitively performed, applied correctly, and executed effectively.
Nevertheless, clients some times tell us that «their risk management is good, but there must be more to it».
When you think about risk management in your organisation, has this thought ever occurred to you?
If so, please read on.
Effective and efficient company-wide risk management is not magic. However, management and boards of directors are often dissatisfied with the results of their company’s ERM projects.
Why is that?
I present my point of view from the other side and show you the core ingredients, the basic recipe for “what good looks like”, so to speak. I make these statements on the basis of the observations we have made in our work over the past few years.
- deploy change management efforts to ensure all important stakeholders (management, board, peers, etc) are interested in and committed to ERM.
- build and/or strengthen an organisation-wide risk culture
- choose an accepted ERM standard, implement it conscientiously, learn, and adjust if necessary.
- link ERM to the vision, mission, strategy, and short-term goals. In other words, embed ERM into your organization.
- use the proven “PACED” and “Risk Maturity” approaches as benchmarks to ensure you are and stay on track.
I take the above-mentioned ingredients and turn the argument around into a blunt statement: if your ERM is cobbled together from botched methods, accumulates dust in the archive, and is presented once a year to a moderately interested management team, then not much will come of it.
In subsequent blogposts, I will spend time on each of these key ingredients and highlight our observations and recommendations to support your ERM-journey. More specifically, I share some methods and approaches on how to successfully anticipate and mitigate these potential stumbling blocks.
If you cannot wait for these blogposts and podcasts, then head over to Amazon and purchase our books that focus exactly on ‘what good looks like’.
Get in touch with us for a free initial diagnosis of your ERM. I am sure we can help you efficiently and effectively to generate additional value from your company’s current risk management.
Thank you for reading this Blogpost, stay well and until very soon!