For the past 30 years, enterprise risk management (ERM) programs have helped organizations proactively identify and address risks, however, many times it provides limited insight into strategy and strategic risks, according to a new RIMS report titled “Pivoting from ERM to SRM.”
To deepen that alignment between risk management and strategy, members of RIMS Strategic and Enterprise Risk Council explored opportunities and best practices for risk leaders to successfully accelerate ERM into a well-designed and executed Strategic Risk Management (SRM) program. With supporting detail from the previously published RIMS SRM Implementation guide, the report examines: why pivoting is necessary; SRM’s relationship to ERM; gaps between ERM and SRM; game-planning to pivot; identifying strategic risks; and techniques and tools.
Additionally, the report highlights these key drivers for risk leaders to shift from ERM to SRM:
1. SRM reframes risks, positioning them as opportunities rather than impediments;
2. SRM links executives who are accountable for strategy with operations leaders;
3. SRM assigns and establishes ownership to effectively manage strategic and emerging risks.
“Every organization’s ‘pivot’ or journey from ERM to SRM will take on a different form,” according to the report. “Strategic risk considerations are core to informed risk-taking in pursuing opportunities and anticipated rewards. Risk professionals have a unique perspective and insight into the organization that allow them to provide additional value through SRM.”
“Pivoting from ERM to SRM” is available in RIMS Risk Knowledge library. To access RIMS thought-leading ERM and SRM content, resources and tools, visit RIMS Strategic and Enterprise Risk Center.
On November 4 and 5, the Society with host the virtual RIMS ERM Conference, bringing together ERM leaders from around the world to share their experiences implementing and elevating their programs. Sessions will cover a range of ERM, including the relationship between ERM and SRM, as well as best practices, opportunities and Board expectations. To register or view the full agenda for the RIMS ERM Conference, visit www.RIMS.org/ERM2020. To learn more about event sponsorship opportunities, contact RIMS Exhibitions and Sponsorship Sales Manager Matt Whyte at mwhyte@RIMS.org.