To begin the year of 2013, more and more businesses are looking for new ways to increase their company’s profit margins and management of risk, and align the two. One of the best ways this is often achieved is by using ERM to continually assess not only what type of risks are out there that can be insured, but also how those risks can be managed through the operational and strategic environment that your company implements.
Some companies still continue to dismiss the ERM process and view it as a waste of time being merely just another box to check of for compliance reasons. The benefits of ERM however, are obvious (if done correctly) as it can continually assess the appropriate level of risk a company is currently absorbing. Once it is clear how much risk your company is taking on, it will allow the CFO of the company to accurately set a “Risk Appetite” level. Previously, our blogs have mentioned Risk Appetite and how this one step can help align a company’s strategic goals with its operational ones, creating a three-dimensional methodology for your company to present its risks to the board transparently. This requires leadership from the top level to get involved so that Risk Management can permeate through any organization. In fact, a recent white paper was published that attempted to illustrate how CFO’s who work with the Risk Management department to implement successful ERM processes create a vital link that only translates to better management of a company’s risk.
Understanding that implementation of successful ERM processes directly fuels long term sustainability of a company, The ALS Group allows CFOs to effectively communicate to their employees, board, and senior management the top risks that their company is exposed to. If you would like to discuss the ERM process or the implementing strategies that can be used by any organization; please feel free to contact The ALS Group for more information.
