Many companies implement Enterprise Risk Management (ERM), then sit back and assume that all their problems have been solved. Unfortunately, that’s not how ERM works. ERM is an ongoing activity; organisations which implement it should not limit themselves to just ticking boxes. They should be actively overseeing its systems, processes
Can you "outsource" risk management? Management of risk may be outsourced but the risk still has to be borne by the organisation. There is no getting away from the fact that regardless of whether risk is managed in-house or is contracted out, the risk itself remains the responsibility of the
Risk and strategy have a symbiotic relationship. There can be no strategy if there was no risk to begin with, and the existence of risk makes strategy necessary. But what exactly is strategic risk? Strategic risk can be broadly defined as a risk that has a direct impact on an
Risk management, as the term suggests, is the province of management. Risk oversight, on the other hand, is the responsibility of the Board. There is an inevitable overlap as the Board sets the strategy of the organisation’s risk management and keeps an eye on management as it operationalises the management
Does the risk management function really add value to the Board and Management of companies? Research has shown that companies which have implemented risk management do generate better business outcomes. In fact, the more mature a firm’s risk management function, the better the firm is likely to perform. This implies
Every project is unique; no project is exactly like another, even if similar activities have to be undertaken to achieve their completion. In a dynamic business landscape, nothing stays the same. The project objectives may vary; the team undertaking it may have more or fewer members than the previous team;
What matters more when implementing ERM – model or mindset? Following an ERM model or framework has to be supported by the right attitude or mindset. When following an ERM model, users need to go beyond mere box-ticking. They have to understand what they’re doing, and why they’re doing it.