ERM is not an easy journey to start on. You can’t do it by yourself. It’s a true team exercise and requires leadership, enthusiasm and endurance. It will not work without full support of the board and executive management.
When considering to start on the ERM-journey, a number of buy-ins are needed. Most critical are audit committee members, the CEO and his/her team, the CFO and the CAE (Chief Audit Executive); also head of strategic planning if he/she for some reason is not part of the executive team. Thereafter the most important people to get on the band-wagon are the operational teams. ERM is not a head-office exercise, but a part of every-day operations in every corner of the organisation. ERM is more a mind-set and change of behaviour than technical risk analythical process.
As we mention elsewhere, we can support the start-up of ERM with board and management presentations to get the mind-set started. It is important to put a lot of planning into the start-up. We recommend a doing in initial ERM-workshop before starting in a larger scale. What are the short and long term objectives of engaging the organisation in ERM? Which are key stakeholders? Which are their attitudes and expectations? Which stumbling blocks can we encounter? What must go right if we’re going to be successful? Create an action plan and manage the risks and opportunities that manifests themselves. At Allevo, we’ve been on this journey several times, we make great travel guides.
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