The key questions entertained at the level of the C-suite with regard to ERM are likely these three, to which I give an answer in summary:
a. What exactly is ERM?
Due to uneven development in the field, the definition has to be selected from among many, or created. I offer a carefully crafted definition.
b. Is there a verifiable value proposition?
Yes. An incremental, low-risk and trial implementation will yield results, successively:
(1) with respect to clarity of the strategic identity and aims;
(2) by supporting execution on goals and objectives;
(3) by analyzing and solving business problems.
c. How can it be integrated, quickly and efficiently, with existing planning and management?
(1) establishing sound planning, and
(2) using the principles of successful program implementation.
An elaboration on these answers is given over the course of the podcast series.
1. Enterprise Risk Management essentially comes from the worldview of rational planning.
2. Preparedness in the form of Business Continuity and Emergency Planning can be considered the cornerstone of an ERM program.
3. ERM has developed in such a way that there is a multiplicity of definitions.
4. The planning regime itself is all-important.
5. Survey results show little confidence in the quality and utility of the results of risk assessment.
6. This leads us to value, as the core practice in ERM, what I call High Quality Risk Assessment.
7. The second main pillar of a successful program is to be acutely aware of a body of knowledge addressing generic program success. This seems to be little-appreciated in the management world.
8. The titles and job descriptions of those managing risk is varied.
9. Managers responsible for ERM often have trouble with conceptual hurdles.
10. The use of scenario analysis: a. for specific circumstances; b. for future resilience.
11. Risk managers: strive to define your aims, and quickly prove the value of Enterprise Risk Management as a practice which brings scrutiny to the uncertainty inherent in plans.
Thank you for your attention. Anyone wanting support materials can go to riskcommentary.com.
”Enterprise Risk Management holds the promise of capturing the entire spectrum of risk across the organization. This book answers the need for a generic ERM methodology, proven by experience in the field, in both public and private sectors.” (Robertson 2016 back cover)
(E. Robertson 2016) Solving the Enterprise Risk Management Puzzle: Secrets to Successful Implementation
BOOKS, COURSES, and CONSULTING CONTACT
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Due Diligence, Risk ID for Major ProjectsDue diligence is not the same as risk assessment, but they are complementary. Le
Is Financial Risk Management Equivalent to ERM?Enterprise Risk Management, for some, consists solely of Financial Risk Manageme