As an ERM practitioner, if you only look at certain resources (online, associations, educational), you easily come away with the impression that ERM is all about process, process, process.
But as I explain in so many of my previous articles, processes and practices are only half the battle when it comes to effective ERM that adds value to the organization.
This was the core subject of a follow-up conversation with veteran ERM practitioner Karthick Dalawai.
In our previous interview, Karthick walked us through what is known as ‘value-based’ ERM practices and how he has used it in different organizations to provide better information to leadership.
Our most recent conversation slightly broadens the scope to discuss a common sticking point with ERM, specifically how practitioners interact with company leaders.
See the full interview below or jump to a specific part of our conversation.
- Welcome to Karthick and introduction to today’s topic. (0:00)
- How ERM practitioners should be interacting with the business and leadership. (1:05)
- How Karthick and Carol have seen ERM work behind the scenes to support decision-making. (2:40)
- Clarifying value preservation vs. value creation and its relation to value-based ERM. (5:05)
- Determining who will do what, what will hold them back, and what is the minimum risk company leaders need to take so they stay on course to achieve the objective. (6:05)
- Describing a balanced scorecard that supports business leaders. (11:20)
- Why practitioners should limit their use of the word ‘risk’ and what they should say instead. (16:45)
- How a mature organization communicates risk with its Board. (19:50)
- Framework for helping ERM ask challenging questions the right way. (24:30)
- Closing thoughts: Primary stakeholders for ERM are the business leaders, not the Board, not the regulators, and how soft skills are equally important to hard skills. (26:00)
Thank you a second time to Karthick for sharing his experience as an ERM practitioner focused on achieving objectives and not just producing a list of top risks to the company once a year. I look forward to sitting down again to discuss how ERM can play a valuable role in your organization’s success.
Below are some articles, including my first interview with Karthick, that provide additional details to the subjects we discuss.
- Numbers and ERM for Non-Math People: A Discussion on Value-Based ERM
- An Enterprise Risk Management Program is NOT One-Size Fits All
- 3 Types of Objectives and How ERM Uses Them
- Growing Board Risk Oversight Expectations: How ERM Can Help
- Should We Still Be Using the Term Risk Management?
- The Often-Forgotten Skills ERM Professionals Need to Be a Strategic Advisor
- Listening and Reading People – Two Underappreciated Skills Crucial to ERM Success
How would you describe your communication with company leaders?
Join the conversation on LinkedIn to share your thoughts.
