
Actionable Tips for Successful Enterprise Risk Management
ERM must begin at the top, with the board of directors and CEO, and involve the senior management team's commitment to putting in place a formal procedure and managing risks proactively
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CIO Applications Europe | Wednesday, September 01, 2021

ERM must begin at the top, with the board of directors and CEO, and involve the senior management team's commitment to putting in place a formal procedure and managing risks proactively. One must ensure that all levels of the organization are aware of the value of ERM and why it is being implemented.
Fremont, CA: In today's increasingly digital and interconnected global environment, business hazards are developing with greater regularity and velocity than ever before.
Many people equate ERM with a large-scale enterprise program — and something that is too formal, cumbersome, and unnecessary for a company to undertake, especially if it isn't mandated. Even in firms that have ERM in place, the underlying value is often overlooked since it is seen as a routine "check the box" exercise.
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Risk, on the other hand, affects everyone. It isn't confined to a single sector or corporate size. And the value that ERM can bring to both large and small businesses should not be underestimated. ERM is critical in an age of heightened risk.
However, implementing ERM in a company should not be difficult. Here are some pointers to get you started:
- ERM must begin at the top, with the board of directors and CEO, and involve the senior management team's commitment to putting in place a formal procedure and managing risks proactively. One must ensure that all levels of the organization are aware of the value of ERM and why it is being implemented.
- They are already extensively involved in managing traditional and financial risks as finance leaders. Thus, they play a crucial role in understanding how a structured approach to managing business risks may help identify and mitigate difficulties that can throw one's company off track.
- To avoid duplication of effort, one must look at what one's company is already doing to mitigate risk. Because their organization may already be doing a lot in the risk area, one won't necessarily need to add a whole new set of activities to the team's workload when one adopts a program.
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