Back in February I started a blog post about the need for risk management to get simpler, in order to be more valuable. I stated that at it's core enterprise risk management is about answering three critical questions:   1. What are the risks that could impact my goals and objectives? 2. What are we doing about those risks? 3. Is what we are doing effective?   I promised at the end of that blog that I would continue with this line of thought by explaining that all risk, regardless of industry, type, impact or scale follows a simple, 6-step process. By following this process you ensure you effectively and thoroughly manage the risk, identify improvements and ensure compliance. This 6-step process is the foundation of enterprise risk management and the process which enables companies to have confidence in their risk management capabilities, and allows them ...  

A couple of days ago PwC, the global consulting and accounting powerhouse, released a whitepaper titled "Risk in review. Rethinking risk management for new market realities". In this paper they cited the need for a new approach to risk management, based on the changing realities of today's global markets. What "new approach" did they cite as being the most appropriate? Integrated, Enterprise Risk Management!   With PwC now backing ERM as the most effective form of risk management, that makes it a clean 5 for 5 of the big consulting firms who are now in full support of ERM, not GRC, as the best way for organizations to manage risk, improve performance and outperform.   Deloitte, PwC, Ernst & Young, KPMG, Accenture, and The Harvard Business Review all agree that ERM is a critical business requirement for companies, governments and organizations looking to improve ...  

Today Active Risk launched our brand new website. We are all very excited about it. Not only because it represents a new face for our company, but also because we believe it sets a new discussion in the world of Risk Management.   I have blogged about this previously. It seems that since inception, the risk management industry has spent all of its time and focus on making risk out to be something we should fear, something to be controlled, and something organizations should avoid. An entire industry, GRC, or Governance, Risk and Compliance arose just to give companies more procedures, policies and ways to audit and control compliance risks. IT security came along and focused on the computers, networks and infrastructure as the place to control risks. Health and Safety focused on the people and processes within a business in an ...  

The lack of senior management support has caused many a restless night for the majority of risk professionals. Risk Professionals report the lack of support by stakeholders and senior management as their #1 challenge to implementing risk management effectively! The solution is surprisingly simple; risk professionals need to effectively communicate and demonstrate the value of risk management throughout the organization to earn stakeholder and senior management support.   While this challenge may initially seem daunting, implementing the following tasks will help you achieve your goals and provide you with greater influence in your organization. It won’t take long before you begin to experience the positive outcomes from your efforts… Communicate the value of risk management with empathy toward the unique roles of individuals in the organization. Be willing to adapt your communication style to earn the trust of executives and stakeholders throughout the organization. Key ...  

Recent reports from the Harvard Business Review and Ernst & Young have shown that effective enterprise risk management (ERM) is becoming increasingly important to senior management. Organizations are moving out of the Compliance cul-de-sac and seeing that ERM can add significant value to the bottom line. But up to now there has been little focus on the employees who have to deliver on the promise.   Our recent ‘What Makes a Great Risk Manager?’ survey, which had 800 responses, found that many of today’s risk managers are feeling highly pressured in their jobs. Analysis showed that 20% of risk professionals are facing major stress, when just 2% of sales professionals fell into this category in a comparative study.   Organizations have to focus on the career and education needs of their risk professionals if they want to retain and develop teams that can make ...