Today’s corporate leaders navigate a complex and ever-evolving environment. Risks are part of business operations. Therefore, organizations must be prepared for an uncertain and volatile future. So how does enterprise risk management (ERM) or internal audit add value? How do you get the C-suite executives’ buy-in? In this article at CMSWire, Norman Marks explains how risk management can build credibility with management.
How to Build Credibility
Examine Potential Threats
When your decisions involve uncertainty, you must work with relevant individuals and departments to determine which ones are most likely to occur. Then, develop plans around those scenarios and identify ways to ensure success.
Determine Reporting Structure
“Where ERM resides in the company hierarchy is also important for improving the perception of ERM,” says Marks.
Think Like Managers
ERM practitioners must think like the management. Understand and link ERM to executives’ priorities and upcoming decisions to make them more relevant. Analyze how risk can be integrated into executives’ daily conversations and decisions.
As a risk manager, you must be more active in identifying and mitigating risks. For instance, you can tap into external data sources to identify the early indicators of potential future problems. Additionally, leverage new technologies to turn the data into insights and unearth previously unseen business threats.
Leverage New Technologies
Emerging technologies such as artificial intelligence (AI) and machine learning (ML) help risk managers to pinpoint specific risks and develop faster responses. Additionally, these technologies help managers focus their energies on critical threats.
Listening to your executives’ grievances will make them believe that you care about their success. Furthermore, it also demonstrates that you pay careful attention. Similarly, discuss when your work results disclose an apparent issue.
These approaches improve the likelihood of receiving explicit positive feedback. Also, there would be requests for further information and invitation to participate in other management discussions.
To read the original article, click on https://www.cmswire.com/information-management/how-risk-management-can-build-credibility-with-management/.