Focusing on the management of risk is the key to making organizations successful in delivering their objectives while protecting the interests of stakeholders. Good risk management allows us to have increased confidence in achieving the desired outcomes, effectively constrain threats to acceptable levels, and take informed decisions about exploiting opportunities.
The delivery of objectives, whether these are organizational, team or individual objectives, is surrounded by uncertainty which poses threats to success but offers also an opportunity for increasing success. The resources available for managing risks are finite and an organization should aim to achieve an optimum response to its risks.
Risks are unavoidable, and one should take the necessary steps and actions such that risks are measured in a tolerable scenario and in the best capacity afforded by an organization.
All management is risk management. This means that it is not only the risk manager who is responsible for managing an organization’s risks. Risk management requires a collective effort, and hence the importance for an organization to manage its risks holistically. Individuals who manage teams having a different background, being human resources, information technology, legal or operations, for example, should look at the correlation that may exist between different risks and at how these may impact their team’s performance.
All of this formulates the basis for implementing the concept of enterprise risk management. Enterprise risk management is a process, ongoing and flowing through an organization, is affected by people at every level of an organization, and is applied across the enterprise, at every level and unit.
The fundamental idea behind the introduction of enterprise risk management is to move away from the practice of risk management as the separate management of individual risks. Enterprise risk management takes a unifying, broader and more integrated approach.
Ultimately, the ERM approach means that an organization looks at all the risks that it faces across all of the operations that it undertakes.
Take the opportunity to learn more about the topic of enterprise risk management and the importance of identifying and managing an organisation's risk from a holistic perspective. Book your place on Fundamentals of Enterprise Risk Management on 19th February 2020:
Join our Talent Acquisition Team at Castille
As part of our growth plans, we at Castille are looking to expand...
The Impact on Businesses after Covid-19
Practical guidance for organisational and employee development.Covi...
Using AI to Benefit Cybersecurity
Cybersecurity has been a growing concern exacerbated by the Covid-1...
Banking on AI to Complete Financial Services
Whilst a large sum of AI goes unregulated, banks can no longer shy ...