Posted: November 9th, 2021 9:09am +00:00 | By Phil Walden

ERM Implementation – Tips 5, 6 & 7

Organisation wide risk responsibility

All managers who are responsible for a business goal should be responsible for the risk management associated with that goal, as well as the overall attainment of the objective. This ensures that risk management is practiced on a companywide level and creates a risk culture throughout the organisation. The manager responsible for reducing pothole claims for example, will be tracking with interest as claims are submitted. They will be making informed decisions about the amount of money they spend in order to fix the highways and reduce the overall number of claims, perhaps hiring new staff or using contractors as required to mitigate a potential staff shortage for example.

Additional performance indicator

Positive risk behaviour could be included into personnel reviews to ensure that employees maintain focussed on risk management.

Risk culture

Creating a risk culture will take some time but ensuring an environment where people can talk openly about any issues or problems they are experiencing will help to embed a risk culture across an organisation. If everyone is aware of any problems, then there is a greater opportunity to rectify them. An important part of risk management is to learn from previous failings so that an organisation can be pro-active rather than reactive. Having the appropriate mechanism in place to discuss lessons learned in a positive and educational manner is essential to avoid repeating the same mistakes.

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