For many, Enterprise Risk Management (ERM) is like eating vegetables or doing homework – it’s important, and even required in some cases, but it’s something as kids we just did NOT want to do. Growing into adulthood doesn’t change this fundamental concept. We don’t want to go to the dentist or renew our car registration. We do them anyway because the consequences of inaction are much worse.
Much the same can be said for ERM.
Between ORSA requirements for insurance carriers, Board expectations, or SEC/stock exchange risk disclosure requirements, there’s a number of reasons that prompt a company to establish ERM. However, when ERM is just seen and treated as some nuisance to check off a list, it’s not hard to see why so many companies find so little value in it.
Transforming ERM from something your company has to do into something that it wants to do will be a challenge, but thankfully not one that will require prohibitive investments in both money and time.
Today’s article, originally published in the journal Carrier Management, breaks down what needs to be fixed to change ERM from a “have-to” to a “want-to.” Learn specific struggles companies encounter plus solutions that you can begin implementing almost immediately.
Although this article speaks to the needs and concerns of property & casualty insurance carriers, the challenges and solutions outlined contained within are applicable to any company, regardless of industry.
Click the image below to access the full article.
Is your company’s ERM still focused solely on satisfying regulators and preventing failure or has it been transformed into a valuable decision-making and strategic planning tool?
To share your thoughts on this challenging subject, leave a comment below or join the conversation on LinkedIn.
Email me if your company is struggling to transform ERM from a have-to to a want-to and would like to learn more about how working with a consultant can help address these types of challenges.
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