If your answer to this is YES, then you will need to reinvigorate risk management into your culture and your organisation. How would your organisation measure up, if you used some metrics to monitor your risk breadth and risk depth? Do you have both (risk breadth and depth) or is one higher than the other? Is compliance your major reason for implementing a risk management framework into your organisation? Wouldn’t it be better for your organisation, staff and stakeholders if you implemented your framework with the intensity of adding value to your organisation, and following the ISO31000:2009 you would be complying with this guiding standard anyway?
Over the years either from working in industry and with our students one area of opportunity is to focus on the area of enterprise risk management value (ERMV). (With intensity and vigour!) This focus is on the framework adding value to every facet of the organisation and is a different approach than asking for staff to populate the risk management software. (Don’t get me wrong this is a key information and knowledge management system) however staff are making decisions every day and are often disconnected from the risk management framework when being data input driven! Deadlines are drivers too, when populating risk management software programs. “Are the registers updated for our next risk management report?” the manager may demand in a meeting. You know exactly what happens next don’t you? The staff are, then feverishly populating the software to add currency but are they adding value? The value of enterprise risk management has to be understood at all levels of the organisation. It needs to be constantly reinforced, interpreted into terms individuals can understand and value, calculated (using value, worth and financial metrics) and managed effectively and efficiently.
Tips for adding ERMV in your organisation
- Ensure all staff are trained in ERMV (this is not software trained)
- Educate all staff on the vision, mission and organisational objectives (strategies)
- Ask staff to critically question the validity of these objectives in their current operational context (Are they still relevant? Etc)
- Explain how organisational goals are broken down from the strategic objectives (staff need to know that strategic plans and operational plans are connected)
- Enlighten staff about how these goals are broken down into targets (these are often achieved at the frontline level in the organisation)
- Educate staff on risk management and introduce them to the standard.Don’t scare them, excite and invigorate them.Staff at all levels will benefit personally from a more in depth understanding of risk management.
- Then commence some formal and informal training on the benefits that risk management would bring to your organisation.You don’t even have to mention the software.Many successful organisations start with excel spreadsheets before introducing a software program.The critical factor here is that they need to understand the VALUE that risk management brings to all facets of the organisation.
- Ensure you have equal measures in Risk breadth and Risk depth to monitor staff engagement.
- Build the risk culture, process and framework.
- Then introduce your knowledge management system – your risk management software and complete some software training.The value of risk management needs to come first,then there is an increased likelihood thatstaff will value the risk management software that stores, captures and utilises the data that staff input.Limited software input = limited data output.
Risk management does ensure that organisational resources are more closed aligned to the achievement of the strategic goals of the organisation and this then cascades throughout the organisation. Achieving the organisational goals has to be good for all stakeholders and just one way is by adding enterprise risk management value.
Tafe SA offer Risk Management training either customised to suit the specific needs of the organisation or this unit is embedded in a range of qualifications. Head to www.tafesa.edu.au for our latest courses or email me any questions.
Lecturer at Tafe SA