Enterprise risk management (ERM) can be the “silver bullet” that takes an organization from good to great—enabling a scientific approach to systematically dealing with the obstacles to success and driving performance excellence.
The most successful, high-performing organizations have ERM processes that share the following characteristics. Use the checklist below to see how your organization measures up:
- Roadmap to excellence: take a phased approach to evolve the program.
- Driven by data: built on the facts of what is actually taking place, by accessing and blending data in unique ways to identify risk trends and indicators.
- Dynamic: responsive to ever-changing risks and related events.
- Continuous: provide constant and timely insights in real time.
- Comprehensive: consider all aspects of all forms of risks, and their impact on each other, and in aggregate.
- Collaborative: ensure that all three lines of defense are working in an aligned way around their respective responsibilities.
- Forward-looking: provide notification of what is happening, what is likely to occur and what must be done in response.
- Action-oriented and time-bound: ensure that appropriate responses are identified and take place within a critical time frame.
- Contextual: provide insights that are relevant to the function of managers at different levels and with different roles as relevant to achieving overall corporate objectives.
- Highly efficient: driven by technology that is designed specifically for achieving all of the above