When is the last time you rushed to the front of the line to get a root canal or pay a speeding ticket?
I think it’s safe to say the answer is never…
ERM is much the same way for many executives. The preference is to talk about operations, systems, strategy, and competitive advantage, not ERM. They would prefer to not think about it until they absolutely have to.
Most people understand that nothing stays the same, and operational practices and procedures have to adapt to current events and trends to meet the company’s needs. However, when it comes to ERM, many expect practices implemented years ago to still work despite company growth and changes in the operating environment. What happens instead is an outdated ERM program that is unwieldy and provides little to no value to the company.
As we’ve discussed many times, and will continue to do so, the ultimate goal or ideal for ERM is to increase awareness for areas of uncertainty, help the company take the right risks in the right area, and proceed accordingly to increase the confidence in achieving its goals and objectives.
With companies and operating environments constantly changing, it’s important for ERM practices to be set up in a way so they can adapt and mature alongside.
Unfortunately, many companies wait until they are backed into a corner to act.
Today’s article, originally published in the Q1 2024 edition of Carrier Management, provides examples of what may prompt a company to update its ERM practices, how to assess where practices currently stand, and what to consider when adjusting ERM practices to meet current and future needs.
Just like previous articles appearing in Carrier Management that speak to insurance carriers, these points can apply to any company regardless of industry.
Click the link or image below to access the full article.
Do Your ERM Practices Need Updating?
As always, I want to extend a huge thank you to Carrier Management for publishing this and other articles in their journal to help insurance carriers better understand how they can use ERM to help ensure their success.
What circumstances ultimately prompted your company to update its ERM practices?
Please feel free to share your thoughts and experiences on this important topic. You can either leave a comment below or join the conversation on LinkedIn.
And if your company’s ERM has found itself backed into a corner and doesn’t know where or how to begin making changes, reach out to discuss your program’s current status and where it needs to be.
