Contemporary organization's success is, in large part, driven by how wisely it takes risks and how effectively it manages risks.
Gain In-depth understanding of risk management: Silo is often a part of reality in risk management. The key is for the risk management team to understand how different silos/departments are and manage the tailored solutions. It’s important that risk managers compare their expert understanding of organizational risk with what is known, not known, or misunderstood in various siloes/departments. Under strong Enterprise Risk Management (ERM), people look at the things they essentially do not want to happen. The things that would prevent the execution of the strategy or operational plans from achieving the stated aims or that would even make the strategy and operational plans completely obsolete. Solid risk management approach significantly enforce strategy management discipline.
Cultivate culture of risk intelligence: Strong risk management can be integrated into organizational culture-collective mindset and behavior to run a risk intelligent organization. Instead of risk management being viewed as the role of a few people in risk management, it needs to be viewed as the responsibility of every person in the organization that makes a decision and involves risk. In fact, risk management needs to be integrated into multiple management disciplines such as strategy management, change management, information technology management, culture management, etc., in a complementary fashion for leading organizations forward by avoiding barriers and pitfalls on the way.
In essence, the goal for risk management metrics and measures is to build understanding on decision support: Organizations with the right risk attitude and aptitude can use both quantitative and qualitative methods to assess risks under a valid risk evaluation model, lift risk management from risk control to risk intelligence. The bottom line of return on investment (ROI) should be measured if there is a marked improvement in optimizing processes, managing risks to an acceptable level and grasp growth opportunities to achieve tangible business results
Contemporary organization's success is, in large part, driven by how wisely it takes risks and how effectively it manages risks. Organizations must have solid risk management disciplines, make objective assessments, develop high-effective risk management solution, provide backup options, and make the transition from risk mitigation to risk intelligence
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