Wednesday, October 28, 2015

Risk Management

Who is in charge of managing risk in your organization? Or perhaps we should ask who’s responsible… who’s going to get the blame if things go wrong? The best approach to risk management is to develop an integrated program to which all parts of the organization – not just the C-suite, not only the risk management committee – contribute. The best results occur when everyone, from the Board of Directors on down, steps up and helps ensure that nothing falls through the cracks. Perhaps this week’s articles can help you begin to put such a process in place.

While the concept of risk assessment may seem daunting, especially to an organization without a formal ERM program in place, a recent report points out that the process has many positives. (Item #1)   Proper risk management will reduce not only the likelihood of an event occurring, but also the magnitude of its impact. (Item #2)   The next level of risk management requires the organization to embrace a culture of disaster preparedness. (Item #3)

Most big hits to shareholder value result from strategic and operating risks. (Item #4)   Risk planning is critical, but it won't safeguard your project or your data or your customer from everything. (Item #5)   You need to have the entire board responsible for risk management instead of just delegating this to an audit or a risk committee. (Item #6)

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