We’re fast approaching that time of year when organisations start their strategic planning and Carol Williams –risk management consultant and founder of ERM Insights – reveals her recommended resources
It literally seems like yesterday we were talking about goals for 2019. Before you know it, 2020 will be here!
Risk professionals play a key role in ensuring executives are making the most informed decisions possible.
These decisions are among the most important executives make since they define the organisation’s goals and how they will be accomplished, providing direction for all personnel and activities throughout the entire organization and beyond.
In recognition of this importance, I want to provide a few quick-glance resources to reference as you and executives begin planning for the year, or years, ahead.
The following list is not in chronological order, but rather a logical sequence of considerations for ensuring risk is embedded into strategic decision-making.
Strategic planning is the formal planning of goals by executives (i.e. market share, revenue, etc.) while annual planning focuses more on how the goals set by the company’s leadership will be met. Learn ways ERM can be engaged during both of these processes to ensure the organization is taking the right amount of risk.
Scenario planning is a key part of strategic planning as it helps executives visualize how a certain course of action may play out. It is a tool for recognizing and reacting to (or planning for) change before its negative effects appear. This information helps guide executives to modify plans or uncover new opportunities.
We know that scenario planning is an effective tool, when done correctly, for discovering and testing assumptions to ensure the right goals and objectives are being developed. In this post, learn some questions to consider throughout the strategic planning process (before, during, and after). With answers in hand, executives can determine if goals should be changed or not.
Lack of engagement with ERM during the strategic planning process is a common problem. In this article, I outline the main reason why executives and business units cast reports aside. Instead of getting frustrated, learn how you can make ERM into a valuable tool and not just a documentation exercise.
Focusing on loss prevention rather than success is one of the reasons why ERM fails to add value during the strategic planning process. As this article explains though, organizations need to move beyond a loss prevention/risk “management” mindset to one of optimizing performance and ensuring success.
This guest article from our friend Hans Læssøe provides a different perspective on the differences between traditional risk management (i.e. managing risks already taken) and decision-focused risk management (i.e. occurs before decisions are made). Learn similarities and differences between the two, plus a few tips on how risk professionals can start providing a risk perspective during the decision-making process.
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