New website = RiskCommentary.ca
What are the key questions of senior executive in considering the adoption or remediation of enterprise risk management? Answers to these questions form an overview to guide the successful roll-out of ERM.

Key questions entertained by the C-suite with regard to ERM likely include these three:

a. What exactly is ERM?
Due to uneven development in the field, definitions are many. I offer a carefully crafted definition.

b. Is there a verifiable value proposition?

• get clarity on strategic identity and aims;
• support execution of goals and objectives;
• analyze and solve business problems.

c. How can it be integrated, quickly and efficiently, with existing planning and management?

• establish sound planning, and
• use the principles of successful program implementation.

An elaboration on these answers is given over the course of the podcast series.

Main points:

1. Enterprise Risk Management is rational planning.
2. Business Continuity and Emergency Planning.
3. A multiplicity of definitions.
4. The planning regime.
5. Survey results.
6. High Quality Risk Assessment.
7. Principles of program success.
8. Titles and job descriptions.
9. Conceptual hurdles.
10. Scenario analysis and Future Scenarios Planning.
11. Prove the value of Enterprise Risk Management.

KEY QUOTE

”Enterprise Risk Management holds the promise of capturing the entire spectrum of risk across the organization. This book answers the need for a generic ERM methodology, proven by experience in the field, in both public and private sectors.” (Robertson 2016 back cover)

LINKS
(E. Robertson 2016) Solving the Enterprise Risk Management Puzzle: Secrets to Successful Implementation

Blog posts addressing risk tolerance:
Risk Tolerance: Non-Finance Examples
Making Sense of Risk Tolerance, Risk Appetite

Books and Courses
Consulting Contact

New website = RiskCommentary.ca
What is the “upside” of risk? Does ERM manage opportunity meaningfully? It leads to a structured innovation program that risk managers can lead with confidence.

1. Opportunity - origin of the idea in ERM
2. Opportunity - how can we make sense of the idea?
3. Opportunity - as innovation
4. Innovation
a. an established discipline
b. within the grasp of the risk manager; an expanded role
5. Innovation - Free Online Introductory Course
6. Innovation - Paid Course

Summary

KEY QUOTE

”...risk managers can borrow from the practice of innovation and use a structured method to seek out, evaluate, greenhouse and develop new ideas” (Robertson 2016 p.112)

LINKS

Risk Commentary podcast books and courses.
(E. Robertson 2016) Solving the Enterprise Risk Management Puzzle: Secrets to Successful Implementation
Technology implementation - 3-part discussion, LinkedIn audio posts:

innovation - successful tech implementation

New website = riskcommentary.ca
[Re-edited for clarity.]
Due diligence is not the same as risk assessment; they are complementary.

Due Diligence and High Quality Risk Assessment: how could they be used?

1. Quote: the hope for a less quantified, more qualified and thoughtful approach.
2. Due diligence definition vs risk assessment.
3. Order of operations:
a. select using matrix with criteria;
b. conduct risk assessment.
4. Maturity matrix definition.
5. Thought experiment: due diligence for investment project using maturity matrix.
6. Maturity matrix (semi-quantitative analysis) with categories:

• firm
• management team
• business model
• deal structure

7. After d.d scoring, do risk assessment.
8. This proposed method would help the management team.

9. “High returns = high risk”. Is it strictly accurate?

10. Application of Due Diligence and High Quality Risk Assessment in stages of major projects.

Summary

KEY QUOTE
“The practice of due diligence has evolved into SOX checklists... Best practice awards are given to the weightiest presentations (by the pound) and third part vendors are predominantly selling ‘perfect solutions’ for enterprise risk management that will seriously impede your ability to conduct business.” (L. Burke Files, Due Diligence for the Financial Professional, 2010, p.6)

LINKS
Robertson, E. Enterprise Risk Management Tools and Templates, 2016. p. 35 - Enterprise Risk Management maturity matrix, based on Carnegie-Mellon methodology.

Mark C. Paulk, Bill Curtis (CAST Research Labs), Mary Beth Chrissis, Charlie Weber Capability Maturity Model for Software (Version 1.1)
The original article whose methodology has been borrowed and applied to many aspects of business.