For today’s post, I would like to share the first in a series of four guest articles published in The Demotech Difference, a quarterly publication that discusses issues affecting the property and casualty insurance industry.
Regardless of your industry, instability, uncertainty, and change are becoming more pronounced with each passing day it seems. Companies need tools for not only meeting these challenges but for building a more resilient company that can both survive and thrive in our topsy-turvy world.
ERM is a tool for helping companies address this challenge, but before even thinking about identifying, assessing, and responding to risks and opportunities, there first must be a culture in place that embeds the right mindset throughout all levels of the organization.
Any house or structure that stands the test of time rests on a solid foundation…ERM is no different. Without the right culture and tone at the top in place, the ERM house of cards will fall when the first stiff breeze starts to blow.
Although the following article discusses some challenges specific to the P&C insurance industry, learn changes any company (including yours!) can make to ensure its culture is conducive to utilizing ERM in an effective way.
Click the image below to access the pdf file (Adobe Acrobat required).
Is your company’s risk culture disjointed or does it support a holistic approach to understanding risks and opportunities?
To share your thoughts and experience on this vital yet underappreciated topic, please don’t hesitate to leave a comment below or join the conversation on LinkedIn.
Once your organization has the right culture, you should follow the next 3 steps in building an ERM process focused on achieving goals and maximizing performance:
- Building a Performance-Focused Risk Management Process Step #2: Identifying Need
- Building a Performance-Focused Risk Management Process Step #3: Enable and Empower
- Performance-Focused Risk Management: Tying it All Together
It’s difficult to pinpoint how increasing instability, uncertainty, and change will impact any one particular industry, but one thing is certain: companies who simply languish from one day to the next putting out fires are putting themselves at extreme risk.
To stop putting your company at risk, feel free to reach out to discuss your specific situation and figure out the steps you can immediately take to start building a solid foundation.