Risk managers know the purpose of their role and the value they bring to any organization. However, other employees may not understand what the risk department does or the widespread benefits of their strategy and actions. In many cases, they might be unable to accurately define risk management! This creates a problem. It’s harder for risk managers to get the buy-in to implement mitigation procedures when risk management isn’t common knowledge. To illustrate the importance of risk, here are 10 reasons all employees should care about risk management. We encourage you to share this with your team!
The following is a guest blog post is from RiskArticles.com.
Enterprise risk management (ERM) is an ongoing process designed to manage all risks within a firm. The Commission of Sponsoring Organizations of the Treadway Commission (COSO) defines ERM:
“Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.”
It is important to establish an ERM Framework because it enables a firm to gain a clear view of its overall risk level. Discussed below are the steps that need to be taken to establish an ERM Framework, the potential benefits that can be expected, and the challenges that may be faced.
At ClearRisk, we're proud to publish new and valuable content to our risk management community weekly. This week, we thought we'd take the opportunity to recognize some other blogs that are doing a fantastic job of sharing risk information. Here are the top eight risk management blogs to follow, whether you've been in the industry for years or are just starting out.
Implementing a risk management process is vital for any organization. Good risk management doesn’t have to be resource intensive or difficult for organizations to undertake or insurance brokers to provide to their clients. With a little formalization, structure, and a strong understanding of the organization, the risk management process can be rewarding.
The risk industry and the professionals within it have changed drastically over the last few decades.
Once, risk professionals simply purchased insurance to transfer losses onto another company. Now, they are expected to monitor the risk environment, identify and predict risks, and implement proactive strategies to prevent issues from occurring or minimize their impact when they do. Top-leadership positions based on risk management, such as Chief Risk Officer (CRO), are becoming increasingly common.
With this in mind, what skills and competencies are now necessary for a risk professional to be successful? Certainly a general knowledge of the insurance industry and financial risk will no longer suffice. In addition to an understanding of many topics and environmental factors, there are necessary personality traits, such as influential, flexible, and collaborative.