How to Measure your Enterprise Risk Management Effectiveness

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We are often asked for insight on business measures or KPIs for ERM programs to track overall progress and effectiveness.

The key question for risk managers is: how do I measure the value ERM is delivering to my organization?

Om this presentation see samples of measures that will quantify and measure the value your ERM program.

Published in: Economy & Finance, Business
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How to Measure your Enterprise Risk Management Effectiveness

  1. 1. WEBSITE: http://globalriskcommunity.com/ EMAIL: info@globalriskconsult.com WEBSITE: http://globalriskcommunity.com/ EMAIL: info@globalriskconsult.com How to Measure your Enterprise Risk Management Effectiveness? by Steven Minsky Best Content from GlobalRisk Community
  2. 2. WEBSITE: http://globalriskcommunity.com/ EMAIL: info@globalriskconsult.com How to Measure your Enterprise Risk Management effectiveness? by Steven Minsky Number of Systemic Risks Identified  Systemic risk identification will detect areas of upstream and  Downstream dependencies throughout your  Identify areas that would benefit from centralized controls so the extra work of maintaining separate activity level controls is eliminated, increasing organizational efficiency. How do I measure the value ERM is delivering to my organization?
  3. 3. WEBSITE: http://globalriskcommunity.com/ EMAIL: info@globalriskconsult.com Percentage of Process Areas involved in Risk Assessments  ERM is cross-functional in nature and cannot be done in silos.  A risk event in one functional area also affects other functional areas within the business.  Process owners own the risk  The more process owners involved in risk assessments, the more accurate and forward- looking the information collected will be, both of which are hugely valuable to the organization. How to Measure your Enterprise Risk Management effectiveness? by Steven Minsky
  4. 4. WEBSITE: http://globalriskcommunity.com/ EMAIL: info@globalriskconsult.com Percentage of Key Risks Mitigated  Sense of your overall risk coverage is important; however, it is not nearly as valuable as knowing the coverage of your organization’s key risks.  This will help you to prioritize resources to the risks that need stronger coverage.  This gap analysis with a tolerance level will also help you to identify emerging risks as they rise out of tolerance How to Measure your Enterprise Risk Management effectiveness? by Steven Minsky
  5. 5. WEBSITE: http://globalriskcommunity.com/ EMAIL: info@globalriskconsult.com How to measure your Enterprise Risk Management effectiveness? by Steven Minsky Percentage of Key Risks Monitored o If a risk or activity changes, organizations have no way of knowing how, and if, these changes will affect their metrics. o Through risk assessments and linking risks to activities, organizations can start prioritizing what activities need to be monitored. o Regular risk assessments enable organizations to detect increased threat levels and identify new emerging risks before they materialize and bring business metrics out of tolerance.
  6. 6. WEBSITE: http://globalriskcommunity.com/ EMAIL: info@globalriskconsult.com Sign up NOW using this personal invitation link http://globalriskcommunity.com/?xgi=0QLXOKRG13ye0O PS: Below are just some of our popular content and discussions published on our site: (accessible only for members. Registration is Free and takes only 1 minute). Employment trends and Salary Insights http://globalriskcommunity.com/profiles/blogs/2013-salary-insights Case studies, whitepapers and free research of the week: http://globalriskcommunity.com/profiles/blogs/case-studies-whitepapers-and Complimentary Trade Magazine Subscriptions & Technical Documents: http://globalriskcommunity.com/profiles/blogs/trademagazines Join our community to get new business, new contacts, jobs, latest news and to exchange ideas

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