strategy

10 Attributes that Made ERM Successful at the LEGO Group

LEGO is a timeless, classic toy line popular among kids and the young-at-heart, including here in our home. Building LEGO sets either as a themed set (e.g., Star Wars, fire station, airport) or creative imagination is something my son and I have enjoyed doing together for several years now. Just recently, he expressed his desire…
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3 Steps to Handling Risks that Exceed your Company’s Appetite

As I and others repeat often, it is impossible to manage every risk. Doing so is counterproductive and leads to even more problems than it solves, including preventing your organization from achieving its goals and objectives. Here is the truth: life is about choices and resources (time, financial, etc.) are scarce. Risks are no different.…
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ERM for Small and Midsize Business: It’s Just NOT the Same

We’ve all heard it from politicians and the press, but it’s true – small and midsize business (SMB) constitutes the lion’s share of the economy. They account for 64% of new jobs created in the U.S. and over 90% of the “business population” according to this report. Gartner defines small businesses as those firms with…
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visual aids

Harnessing the Power of Visual Aids to Prompt Robust Risk Conversations

There’s a good chance – 65% in fact – that you are a visual learner. I personally put myself in this category. Rather than reading text or listening to instructions, I always perform better and remember more through visual aids, especially on a subject I’m not familiar with. Numerous research studies back up my personal…
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software

How can your ERM Software serve both Risk Managers and Executives?

One key point I emphasized in my ERM software buyer’s guide is that, in spite of the vast amount of commentary on the challenges of risk appetite and other risk management concepts, no topic is more difficult to grasp and execute than choosing the right risk management software system for meeting the company’s needs. Before…
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Decision Analysis: A Structured Process for Improving Business Decisions

If you scroll through the posts on this blog, you will notice that many focus on decisions. This shouldn’t be a surprise considering that ERM is one tool for ensuring risk-informed decisions across the organization… Unfortunately, a growing number of organizations continue to report that their ERM processes do not provide a competitive advantage and…
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Remote Work: Is Your Company Making a Strategic Decision or Being Reactive?

It’s probably not shocking news that the interest in remote work has accelerated dramatically in the midst of the coronavirus pandemic. According to Global Workplace Analytics, only 3-4% of the workforce was remote before the COVID crisis, but by the end of next year, this number could jump to 25-30%…talk about a radical change! There…
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Why Do Most Organizations Avoid Quantitative Risk Assessment?

No ERM process that is effective at helping a company understand threats and opportunities to achieving objectives is going to just create a list of risks. While that may be sufficient for a regulator, it means absolutely nothing for helping executives run the organization better. After identification, companies then take the vital step of assessing…
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Fewer Companies Realize Strategic Benefit from Risk Management Activities

Every spring, NC State’s ERM Initiative in partnership with the AICPA releases their State of Risk Oversight report. Data for the report was obtained through a survey sent to senior executives across a variety of industries this past fall. For this year’s report, 563 surveys were completed, which is a significant increase over prior years.…
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