Is the faltering ERM program fixable? How to diagnose challenges in Enterprise Risk Management initiatives, and determine the best course of action.

Show Notes

SHOW NOTES 
Introduction
The curious juxtaposition of need vs poor take-up, as explained in Episode 1.

Steps in Analyzing and Fixing Poor Take-Up in ERM Programs

1. Take a step back in order to analyze the situation.
2. What is the nature of the ERM mandate and your role in it?
3. What are the motives of senior executive regarding ERM?
4. What are the motives of staff regarding ERM?
5. Delicate matter of sorting out objective vs subjective reasons, and degree of personal investment.
6. Characteristics of an overly-elaborate program in its mid-life stage.
7. Specific fixes for improving the quality and compelling nature of risk information:
 - goal of remediation: ensure relevance, utility and compelling nature of risk information
 - cogent risk register using properly formed risk statements

 - review guidelines for planning; goal formulation; setting context; and risk ID facilitation

 - review Likelihood and Consequence schemas with a view to simplifying, if appropriate

 - granularity of risk analysis corresponds to context

 - groups may not engage with text-based risk process (use more verbal, visual in daily stand-ups)

8. What about “opportunity”? Ref: Innovation.

9. What about other risk management sub-disciplines?

Summary

1. Return to first principles recommended.
2. Aim for information directing action to reduce uncertainty.

3. Simplify the program and focus on efficiency; integrate it with planning and management.

4. Review the principles of program success (Ep 15): make sure you’re not falling into common pitfalls.

KEY QUOTE

“The result [of High Quality Risk Assessment] is a body of risk information that is fresh and revelatory, leading to problem solving. When that happens at your risk ID session, it is unmistakable. People see the logic of the method and acknowledge that it is working.”

LINKS 

(E. Robertson 2016) Solving the Enterprise Risk Management Puzzle: Secrets to Successful Implementation 

Innovation: How Can My Organization Get Started? - free introductory course
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