Without doubt, the single biggest factor when it comes to successful Enterprise Risk Management (ERM) is executive support. The concept of ERM is set by the tone at the top by executives who believe in and support a corporate culture that raises awareness about key risks and how to handle them through the organization. Getting top management buy-in is crucial, which is why we have put together a white paper full of ideas for communicating the value of risk management across the business.
Increasingly we are seeing that in the most successful organizations, risk management isn’t just about avoiding risks, it’s about understanding the key risks, taking the right risks at the best time with the most appropriate precautions – in short, a proactive approach to risk management that includes opportunity management.
Achieving this panacea where opportunities as well as risks are managed with the active involvement from Board level takes good communication and an understanding of the value to the business. A comprehensive ERM solution, where appropriate information is presented to each user, in an easily digestible form will go a long way to ensuring that every employee, partner and associate of the company sees risk management as part of their daily job role.
Embedding ERM, which is a process, a tool and a culture within business processes reduces corporate liability. Business partners will prefer to do business with companies with lower liabilities, investors will be more likely to invest and customers more likely to buy. These business opportunities combined provide the revenue opportunities that support ERM initiatives and help you to secure that all important executive support.
Look out for our forthcoming guide to promoting the value of risk management in your organization: Articulating the Benefits and Value of Risk Management. Available soon!