In this digital and interconnected global environment, business risks are occurring faster than ever before. Today, board members are implementing a holistic approach to risk management—enterprise risk management or ERM. Does improving ERM help your business? In this article at CMSWire, Norman Marks explains how ERM can build credibility with management.
How to Improve ERM
Start Thinking Like Management
“When it comes to big decisions involving uncertainty, work with relevant individuals and departments to develop scenarios, determine which ones are mostly like occur, determine how to ensure success, and develop plans around these likely scenarios,” says Marks. Additionally, communicate the importance of ERM and its implementation to all the levels in your organization.
Examine the Biggest Threats
Work across the business to identify risks with the highest impact and likelihood of occurrence. This will help you focus on the primary target areas. Furthermore, research and adopt a risk management framework that works for your organization.
Implementing an ERM process is not a one-off exercise. You must regularly review the risk register and mitigation plans to keep them updated and ready for deployment.
What Skills Must Risk Managers Possess?
Show respect to your team members for their experience and insight—even if you disagree. Pay careful attention and actively listen to your employees. Listening to your employees will help you identify potential risks and look for a suitable solution.
Determine how risks affect all areas of your business. This will allow you to come up with solutions and identify opportunities.
Risk managers must manage relationships between several departments and external stakeholders to manage risks. Managers must also possess the ability to produce risk reports and present proposals to senior management or the board for their buy-in.
To read the original article, click on https://www.cmswire.com/information-management/how-risk-management-can-build-credibility-with-management/.
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