Enterprise risk management (ERM) can be the “silver bullet” that takes an organization from good to great—enabling a scientific approach to systematically dealing with the obstacles to success and driving performance excellence.
The most successful, high-performing organizations have ERM processes that share the following characteristics. Use the checklist below to see how your organization measures up:
- Roadmap to excellence: take a phased approach to evolve the program.
- Driven by data: built on the facts of what is actually taking place, by accessing and blending data in unique ways to identify risk trends and indicators.
- Dynamic: responsive to ever-changing risks and related events.
- Continuous: provide constant and timely insights in real time.
- Comprehensive: consider all aspects of all forms of risks, and their impact on each other, and in aggregate.
- Collaborative: ensure that all three lines of defense are working in an aligned way around their respective responsibilities.
- Forward-looking: provide notification of what is happening, what is likely to occur and what must be done in response.
- Action-oriented and time-bound: ensure that appropriate responses are identified and take place within a critical time frame.
- Contextual: provide insights that are relevant to the function of managers at different levels and with different roles as relevant to achieving overall corporate objectives.
- Highly efficient: driven by technology that is designed specifically for achieving all of the above.
7 key trends in enterprise risk management
Excellence in ERM practices is not easy to achieve. If it were that easy, all organizations would already be doing it. Internal controls often have a bad reputation amongst business operational managers, often being seen as impediments to “getting the job done.” This eBook highlights the ERM Process Flow to help you identify, respond, monitor and manage risks, report on results, and continually improve your process.