erm program

Explaining the Why of Enterprise Risk Management

During the North Carolina State University’s ERM Roundtable Summit this fall, one of the topics of conversation focused on how to involve more people from across the organization in ERM. During this discussion, we were all asked, “how many of you have talked extensively about ‘what ERM is’ and explained ‘we are conducting surveys, interviews,…
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Practicing ERM without a Formal ERM Program

Many of the ERM resources you encounter on my blog and elsewhere focus on elements of a formal program like developing a framework, establishing risk appetite, and more. We imply, at least indirectly, that your organization must have this formal structure in place before practicing ERM. However, this isn’t always the case… Double-take – why…
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risk owner

Why Assigning a Risk Owner is Important and How to Do It Right

Falling in the middle of the risk management cycle (after developing risk appetite and tolerance and identifying, but before assessing and analyzing risks), the organization then must identify who will “own” or be responsible for a particular risk. Although the exact definition of what a risk owner is will vary depending on the organization, it…
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credit ratings ERM

A 5-Minute Primer on Factoring ERM into Credit Ratings for Insurance Companies

An article we published in mid-2017 gave an introduction to how credit rating agencies are factoring ERM into their ratings. For most organizations, the evaluation of ERM is simply folded into the overall review of the firm’s management and governance. Additional research and other resources (see here and here) shared with me since the original…
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Relationships: A Common but Fatal Mistake of Risk Management

The majority of articles on my blog focus on the process side of enterprise risk management. I’ve discussed at great length subjects like setting up an ERM program, risk identification, risk assessment, and more. However, the process and technical skills is only part of what goes into a successful, value-enhancing ERM program. If you’re like…
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implementing ERM

The Hazards of Implementing ERM without a Plan

I cannot tell you how many times someone has asked me questions about random parts of an ERM program. The discussions range from basic concepts all the way to advanced topics. What is prompting the jumping between topics? It is typically these two things: Someone looked up ERM and saw some aspects, which looked really…
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risk review

3 Ways to Avoid the Check-the-Box Trap in Risk Review

In both my experience and according to a white paper from PwC, a common ERM challenge is how an annual risk review becomes a check-the-box activity. It shouldn’t be this way… Regardless of the reasons, everyone from executives all the way down to entry-level managers and employees have enough “bureaucratic” burdens as it is. An…
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Key Players for Successful Risk Identification

In order to have a risk management effort that ultimately “creates, protects, and enhances shareholder value,” you must first have a successful risk identification process. I’ve said it many times, and have heard it repeated elsewhere, that risk identification serves as the foundation for the entire risk management process…without it, the entire process is just…
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ERM infrastructure

3 Key Infrastructure Elements for a Successful ERM Program

NC State’s ERM Initiative recently released their 2018 report on the State of Risk Oversight, which is very useful to see the progress (…or not) being made by organizations with enterprise risk management. One of the sections in this year’s report studies the infrastructure of an ERM program, specifically a designated leader of risk, management-level…
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