Elevating risk management to a strategic level in strategic and operational planning helps ensure that what is being planned, and plan execution results, are appropriately compliant. To do this effectively, organizations need to establish, implement, and adhere to an Enterprise Risk Management (ERM) framework and program. We'll show you how do the following:
Risk culture refers to norms, attitudes, and behaviors that an organization displays in relation to risk awareness, risk-taking, and risk management. These norms, attitudes, and behaviors determine an organization’s collective ability to identify, understand, discuss, and act on existing and emerging risks.
The core of an effective ERM framework is a risk taxonomy that names, classifies, and defines risk across the entity. Organizations establish a risk taxonomy structure to:
Activities in the strategic planning process include environmental assessments (internal and external), testing assumptions (at both enterprise and line of business level), developing new strategies, managing the performance of existing strategies, and communicating strategy.
Remediation plans should be required when insufficient and weak management and control practices are identified and/or when risks exceed risk appetite metrics or trending in that direction.