ABSTRACT
In my professional career, I have been involved in risk management since 1987. The following ERM story describes my journey since then, and highlights the key learning made during this period. Hereafter you get a comprehensive list of these points:
A small issue (a weak point in a supply chain) can create a big disruption.
You need to be proactive, and management commitment is a must.
Cross-functional networking is very helpful.
Make sure that you always share the relevant learning within your organisation.
You need to be transparent and create a high level of awareness around the relevant risks.
Initiate a systematic approach; do not wait for major events to initiate the discussion!
Keep the process simple and adapted to the culture of the organisation.
Use colleagues and your own employees to promote the process internally.
Loss prevention and/or business continuity are at the core of managing risks.
Capturing opportunities with the same process can make the process more attractive.
Use the same process in all entities to be compliant with new legal requirements
(easier to implement).
Keep the process as pragmatic as possible; do not overengineer the process; do not simply believe the numbers; and be prepared for the unexpected.
The ERM process should not be seen as ‘on top of’ or ‘in addition to’ something.
Use whenever possible existing tools/processes and align ERM with them.
Apply an integrated approach to become a more performant organisation.
To make a long story short, it’s worthwhile to put some efforts into ERM. Common sense and pragmatism should help you to find the necessary balance between risk taking and risk management, while providing the necessary transparency within the management team. Simply do it!
