Creating Value out of Enterprise Risk Management
At our Tea Talk session on 12th September, IERP® faculty member Zaffarin Zanal gave a featured talk on Creating Value out of ERM. Zaff started off by stating that—to strong murmurs of agreement across the room of risk practitioners—implementing ERM is hard. The typical difficulty with implementing ERM is that while risk professionals understand the value for ERM, the top management (as well as the rest of the organization) might not readily see its value. Zaff noted that when something has perceived value, psychologically there is a ‘pull factor’ to it. It doesn’t require much forceful selling (the ‘push factor’).
He shared that from the results of a 2017 ERM Benchmark Survey which showed that whilst enterprise risk management is a ‘popular’ framework being implemented in organizations, management and line managers are still quite resistant to it. The challenge lies in establishing that pull factor when risk management is so often seen as tedious, bureaucratic, and expensive. To treat this particular ‘acceptance risk’, it is important to understand the potential causes. Read more