For ERM to be successful, risk management must be a part of every critical decision throughout the organization. That means cultivating a risk culture. People at all levels and functions must not only understand the organization’s approach to risk, but take personal responsibility for managing risk in their everyday work.
Making that happen requires top-level buy-in. If the C-suite incorporates risk into their decisions, others will follow. Add to that by communicating widely, clearly, and continuously about expectations. Assign responsibility for managing specific risks – and hold people accountable.
ERM doesn’t eliminate risk – of course – but it will minimize surprises. And if something unexpected does happen, you’ll have the knowledge, tools, and culture to turn those challenges into opportunities for success.