ERM Challenge #10: Losing ERM Momentum in Year 2 and beyond; Keeping ERM Fresh & Relevant
ERM Objective:
Maintain high levels of support and engagement in your ERM program
The Trap:
Rolling the same risks over year to year will quickly devalue your ERM program. Key stakeholders will begin to see it as a “tick-the-box” exercise. This approach contradicts the strategy of identifying risks as part of your annual strategic planning cycle.
The Solution:
Change how you identify risks each year to keep the process fresh and relevant. Bring in outside experts to brainstorm your risks. Conduct risk identification in workshop formats that include all key stakeholders for a given objective or project.
Integrate risk identification and assessment into the annual budgeting cycle. If budgets cannot be approved without a current risk assessment it will prompt renewed thinking each year.
Finally, risk informed decision making requires management to consider risks in advance of their strategic plan. Ensure the ERM team participates in these strategic planning cycles to keep management informed of 2 types of risk; The risk of executing a strategy, and the risk of NOT executing a strategy.
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About The Author
- Richard Wilson
- Richard is a Director in PwC's Risk Advisory practice with clients in both Canada and the United States.
He is an experienced senior executive with 15 years in a CEO or COO role (publically traded and private firms). Richard has been leading risk management implementations for more than a decade incl. 60 C-level risk assessments, and has led online risk assessments for 30,000 people in 25 countries.
He has advised the largest company in the US on risk management, and he has facilitated a risk assessment for the United Nations. Richard has been published in Compliance Week, Canadian Business, and the Globe & Mail and has been a keynote speaker on the topic of risk at many conferences in both Canada and the US since 2004.
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