sprouting plants in soil growth

Enterprise Risk Management Secrets Revealed for Long-Term Growth

One of the most persistent beliefs about enterprise risk management (ERM) is that it’s something companies do because they’re required to by regulators and/or investors. Identify some risks, analyze them, generate a report, and that’s pretty much it.

This mindset is unfortunate because, when harnessed properly, ERM can be a valuable tool for ensuring a company’s long-term success. Thought leaders like Norman Marks, Tim Leech, and others, including many articles here on the blog, explore this linkage between ERM and long-term success in-depth.

A couple months ago, I had the opportunity to speak with Miguel Edwards of FiveM Consulting about harnessing ERM to improve decision-making, pursue goals, and better manage change like digital transformation, among other points. Miguel’s firm specializes in helping small-to-medium insurance companies leverage data and technology to create simplicity, strategic focus, and new growth opportunities.

Although we throw around terms specific to insurance carriers at different points in the conversation, organizations in any sector can use these tips to improve their ERM practices. Click below to watch our entire discussion or skip ahead to the major points listed underneath the video.

 

  • “Tell me about your journey, what got you into this role, and how you started SDS.” (1:40)

 

  • “We’re throwing around the term ERM – gives us an understanding of what is all-encompassed in ERM.” (3:45)

 

  • “What are some of the typical gaps in thinking you find as it relates to ERM?” (8:35)

 

  • “You’re tying change management to execution risk. Is assessing a company’s project portfolio part and parcel of looking at the ERM portfolio?” (11:20)

 

  • “Is there an opportunity to use ERM to improve my decision-making, not even necessarily just the type of risks I take, but even in terms of goals and strategy I choose?” (13:30)

 

  • “I’m used to likelihood vs. impact, but this is looking at risk through a qualitative lens. However, we’re always trying to quantify things. What is your philosophy on risk quantification?” (16:15)

 

  • “We’re always being asked to innovate, but obviously inherent in that is a degree of risk. How do you deal with balancing that tension?” (23:05)

 

  • “What is the role of ERM as companies think about their digital transformation journey?” (27:00)

 

  • “Forgive me, I’ve thought of ERM as a ‘blocker,’ but what you’ve just opened up for me is to use ERM as a tool for finding a more manageable way to execute…” (30:10)

 

  • “It’s a culture change you’re asking for, not just a new trick. You want me to bring ERM into my thinking. How do you get a company to wrap their head around that?” (31:53)

 

  • “As you look into your crystal ball, what are some of the changes to ERM and the assessment and evaluation of risk you see coming?” (34:30)

 

  • “Bringing it back around, tell me about how SDS engages, or the core value proposition of your firm…” (36:55)

 

  • “Is there a formula to create a business case for ERM? How does a CEO think about the type of return they get from a well-defined ERM program?” (37:55)

 

  • “Companies that have these types of programs succeed (…when done well).” (40:15)

 

Thank you to Miguel for featuring me on his podcast!

What other points about harnessing ERM for long-term growth would you add to this discussion?

Join the conversation on LinkedIn to share your thoughts…

And if your company is trying to determine how to best develop its ERM practices to move beyond compliance and list-based ERM, please contact me to discuss your current state and some different ways to achieve your goals.

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Receive Our Weekly Blog Updates

Meet Carol Williams, SDS Founder & Lead Strategist

To our readers:

This blog was launched to provide strategy and risk practitioners with a go-to resource to better guide their efforts within their companies. Thank you for bringing me and my team along to be part of your journey towards better risk management, strategic planning and execution, and overall decision-making. Happy reading!

Find more SDS Insights