Why you Should Manage Tomorrow’s Surprise Today

Even though reports state that more than 65% of organizations have adopted Enterprise Risk Management, many executives remain unimpressed and skeptical of the value their ERM programs are providing versus what is needed.

A report by APQC finds that fewer than 1 in 5 executives say their companies are effectively managing emerging risk, and the report’s authors worry that “Companies may be ‘checking the boxes’ that say they have processes to monitor strategic risks.”

In addition, two in three companies said they did not have a method of ensuring that strategic risks are incorporated into the organization’s strategic planning process, and 43% do not have confidence in their method of reporting to the board.

Why the discrepancy between companies that have adopted ERM and those that are realizing value from ERM? One part of the problem is that risk managers are spending their time on the wrong things. The second issue is that board members, unclear about the methods and value of ERM, are wary of empowering their risk managers to take action.

Risk managers need to break the cycle in order to meet leadership requirements and deliver on ERM expectations. Effective risk management directly contributes to bottom-line value to the organization. ERM programs must measurably deliver on the Board’s key concerns, and an ERM program must deliver small successes quarterly to provide confidence that goals are being achieved.

This confidence reflects positively back on the risk managers responsible for providing transparency and brings increased engagement. An enterprise risk management software can assist in that process by providing a framework for your risk intelligence, allowing aggregation and management of only what’s relevant to the particular topic that’s of interest.

How can we help?

360factors, Inc. is a cloud based Enterprise Risk and Compliance Management Technology and Services Company that will help you improve business performance by reducing risk and ensuring compliance. We also offer EHS consulting through our professional services consultants. RSA offers a wide range of professional services in regulatory compliance and permitting (air, water, and waste), site investigation and remediation, environmental and dredge material sampling and evaluation, and health, safety and risk management services. RSA maintains a staff of experienced key personnel including registered professional engineers, geologists, and health and safety specialists.