1. RISK WATCH
Thought
Leadership in Risk.
REVIEW SPRING 2016
Contents
Preface 1
For the ERM Professional: Dealing
With Uncertainty Means Mindfulness
and Resiliency 2
Special Edition
3. Risk Watch Spring 2016 The Conference Board of Canada 1
The following article delves into an
emerging and delicate area. It is not
typical reading for risk enthusiasts, who
usually share perspectives, insights, and
practices on building an enterprise-wide
risk management program. Our authors
touch on the realities, stressors, and
challenges in the ERM profession and
the uncertainty and relevancy the ERM
professional may feel or has experienced
as a result.
“Seek to understand, and then be
understood,” are not only wise words
used by Steven Covey in his The 7
Habits of Highly Effective People, they
are the approach we took to writing
about this topic. Our aim was not to
make conclusive statements but rather
to “… provoke some reflection so that
individual ERM professionals can
resolve their image and relationship
problems for themselves and, as
appropriate, in the context in which
they function.”1
1 Chandra Krishnamurthy, February 23, 2016, in
reviewing this article.
SPECIAL THANKS AND
ACKNOWLEDGEMENTS
Our gratitude goes to Chandra
Krishnamurthy, Director of Internal
Audit & ERM, Hydro Ottawa; Mike
Standbrook, Director, Treasury and Risk
Management, INTERFOR Corporation;
and Cathy Taylor, Vice-President of
Risk, Element Financial Corporation, for
their wisdom, time spent in reviewing
the drafts, and specific input and insight.
We also thank all our interviewees for
their time, honesty, and knowledge that
provided the foundation for this report
and compelled us to investigate options
for the well-being of all professionals.
Dr. Michael Bloom
Vice-President
Industry and Business Strategy
Foreword
4. The Conference Board of Canada2 Risk Watch Spring 2016
by Christine Maligec, Sam Miller, and Karen Thiessen
A SHIFT IN THE ERM
PROFESSION
Over the past two years, we believe a
shift in the ERM landscape has occurred
and, as a result, the ERM profession
is facing increased stress due to
organizational and individual challenges.
Much of this shift has arisen as some
organizations begin to question the
value that their investment in ERM
has generated. Given that so many
management teams agreed to implement
their ERM programs solely because
of regulatory obligations or board
pressure, it is not surprising that ERM
is seen as an unimportant management
tool. Interest and investment thus begin
to wane and ERM morphs into a risk
reporting exercise that leaves many
ERM professionals feeling diminished
in terms of their relevancy. Feelings
of uncertainty over their role, and as a
valued member of the executive team,
bubble to the surface.
Even if ERM is seen as a valuable
activity, and perhaps because of
that, some ERM professionals find
themselves caught in the subtle—and
not so subtle—ERM ownership “bun
fights” that are currently taking place
among various professional associations
and consulting firms. The ownership
debate has led to turf wars over which
department should house ERM or
which credentials are necessary to lead
an ERM program. Relationships with
colleagues can become strained, or even
adversarial, and conflicts can arise in
these instances. This occurs particularly
when there is a perceived threat to one’s
profession, position, experience, or
intellect.
In short, boards and executives require
more demonstrable proof that ERM
brings value to the organization. For the
ERM professional, this is a challenge.
How does one tangibly show that the
benefits or opportunities an organization
reaps are attributable to its ERM
program? Alternatively, put another
way, which organizational rewards,
especially for non-quantifiable risks, can
be directly associated to ERM? When
this is not illustrated satisfactorily to the
board and the executive team, pressure
builds up on the ERM professional.
As other internal and external factors
are thrown into the pot, the pressure
snowballs into more stress and
uncertainty. A cloud accumulates over
the ERM profession. This is when ERM
professionals need to reflect, recognize
they are human, and accept support in
and from various forms.
OUR THINKING AND
METHODOLOGY
While there is little debate on the
ongoing, and perhaps increasing, need
to manage risk given the challenges
that organizations face, very little is
ever discussed on the internal and
external factors affecting the ERM
profession. Nor are there in-depth
discussions within the risk community
on how to cope with all this uncertainty
and prepare for tough times ahead—
particularly when it is a hot button for
some ERM professionals while for
others it can be viewed simply as a risk
of being in the profession.
We set out to explore what some
of these predominant factors were
by first interviewing several ERM
executives from varying industries
and career experiences. Quite a few
common themes and insights arose
from these interviews. Many were fairly
obvious, some more subtle, and others
debatable—depending on the ERM
professional’s background and views.
It became evident, however, that we
needed to dig deeper. Why? On the
surface, it is comparatively easy to
acknowledge universal factors. But,
the emotional effect these have on
individual ERM professionals is more
For the ERM Professional: Dealing
With Uncertainty Means Mindfulness
and Resiliency
5. The Conference Board of Canada 3Risk Watch Spring 2016
or less kept hidden from colleagues and
not easily accepted. It is human nature
to not rock the boat when the waters are
already rough, especially when one is
feeling cornered, irrelevant, or unheard.
Second, we interviewed a trauma
therapist for signs and impacts of stress,
and on how ERM professionals could
best help themselves. The prevalence
of high rates of stress has dramatically
increased in recent times. As many
of us are aware, increased stress can
contribute to serious health issues
and higher health and employer costs.
As well, stress can affect employee
performance, retention, and satisfaction.
With the common thread of stress and
uncertainty underpinning many of the
factors voiced from the interviews, we
decided to look further into what this
means for the ERM professional and
the profession. Our exploration led us
in many directions but, notably, the
linkages between uncertainty, trauma,
stress, and change management were
interesting enough to share. From this,
we identified some classic management
tools and practices1 for both the ERM
professional and the organization for
dealing with stress, uncertainty, and the
changes that inevitably follow.
1 This is not an exhaustive list, but basic infor-
mation to help guide the ERM professional for
further reading.
Common Themes and Messages
What Was Voiced …
• Endorsement of ERM is based on the economic cycle. In hard
times, organizations are seeking more validation of why ERM is
important.
• ERM professionals feel diminished in terms of their relevancy and
begin to question or become uncertain about their significance to
the executive team.
• Even though risk is an accepted part of business conversation with
leaders, some still see it as hazard-based and not in terms of an
enterprise-wide management process.
• Negative risk erodes optimism. Buy-in from the leadership team helps
support the ERM professional in fulfilling his or her role.
• Relationships between people can become adversarial when there
is a perceived threat to position, experience, or intellect.
• Interpersonal conflict rises more often between members in pos-
itions of power and those seen as purveyors of bad or negative
news—aka the ERM professional.
• Managing risk is accepted, but an enterprise-wide effort is viewed
as additional work and the need for more resources when budgets
are lean and the culture defies active and intelligent decision-
making.
• External sources that cause fear or panic influence or affect how
ERM is viewed, accepted, or implemented.
• Transparency of risk information and engagement of internal/
external stakeholders increases confidence and trust and decreases
uncertainty.
• The health or wellness of an organization affects the behavioural
health and productivity of its employees.
What Needs to Be Explored Further ...
• How does one “shock” organizations to prove ERM value?
• How one does finds the right balance between board reporting and
executive interaction?
• ERM deals with uncertainty. The realities of human nature predis-
pose us to be affected individually by this uncertainty. Given the
role of the ERM professional, how does one balance his or her own
health and that of the organization?
• How does one tell when an organization is chronically fatigued
from constant change and demands for change?
• How should ERM professionals handle people in “power” or those
who do not have buy-in of ERM?
• How should ERM professionals package risk information that has a
negative connotation?
• How should leaders talk about uncertainty to their staff and exter-
nally to stakeholders?
• How could ERM professionals support their peers in the risk com-
munity?
• How can ERM professionals scan internal and external factors that
affect their wellness and the significance of their role? How can
they make organizational leaders aware of these factors and, by
extension, the organization’s working atmosphere and pursuit of
objectives?
• How can ERM professionals become more resilient when tasked
with helping their organizations be resilient?
Source: Interviews with nine ERM professionals were conducted by Sam Miller on various dates in mid-2015. Follow-up discussions were conducted with Karen
Thiessen in the same year.
6. Risk Watch Spring 2016 The Conference Board of Canada4
THE ERM PROFESSIONAL’S
PERSPECTIVE: THEMES
AND MESSAGES FROM THE
INTERVIEWS
Sam Miller, a trauma therapist,
conducted our interviews and helped to
extract our findings. He understands
the stressors that ERM professionals
may experience in their career and
the realities of why the ERM profile
can have its highs and lows. He
interviewed nine risk executives; some
of whom were employed at the time
and others who were in transition.
While backgrounds, perspectives, and
experiences varied, common themes
were evident. (See “Common Themes
and Messages.”)
The stressors that ERM professionals
currently experience are usually a
by-product of the organization’s greater
context. This context often leads to
the entire organization experiencing
hardships and “trauma,” with executives
having to make tough decisions in the
face of a great deal of uncertainty. This
uncertainty can lead to major changes
within the organization and with its
people. Thus, the realities of human
nature can either enrich or undermine
ERM.
In large part, endorsement of ERM
appears to be based on the economic
cycle. When times are good, ERM
is seen to add value or to adequately
function within the organization.
However, when times are tough,
organizations seek more validation of
why ERM is important—challenging
ERM professionals to prove its tangible
value. Furthermore, external sources
that cause fear or panic influence or
affect how ERM is viewed, accepted, or
implemented by all.
With the current rapid and extreme ebb
and flow of our business environment,
trying to achieve a sense of certainty
is very difficult. Who knows what the
price of oil will be in six months? Will
other sectors, like manufacturing, help
to carry the country’s fortunes with the
dip in the dollar? Is there even enough
manufacturing left in Canada to provide
for this economic diversity?
The unfortunate part of this frenetic
business environment is that those who
speak the language of uncertainty might
not be consulted for their perspective
on how to understand and weather the
storm. ERM is an entire profession built
around uncertainty, yet is typically one
of the first departments to experience
layoffs or budget clawbacks to make
short-term adjustments with a narrowed
view of the long game. For the ERM
professional, these tough times
can be spiritually eroding when an
organization ignores the early warnings
the professional provided and ends up
ultimately suffering a consequence. The
albatross for ERM professionals is that
risk still has such a negative connotation.
Our industry has the historical
misfortune of being “the merchant of no”
or “the purveyor of bad news.” For some
organizations, the annual risk report
and ad hoc assessments are seen as a
catalogue of doom and gloom.
Felix Kloman, risk management author
and guru, may have defined it best
by saying “(ERM) might not be seen
as a proper ‘profession,’ but more
so as … developing ideas on how to
direct organizations and the individuals
connected to them toward their goals.”2
This was confirmed with some of the
2 Felix Kloman, chain of e-mail correspondence,
January 2016.
interviewees who stated that their role
has become more encompassing and
diversified, creating more challenges.
These individuals are not strictly centred
on developing and implementing an
enterprise-wide risk management
process, but on collecting information,
turning it into data, and synthesizing
the data into relevance for their
organization’s leaders. The procedure
involves dipping into various disciplines
and extracting approaches, insights, and
worldviews, and adapting them to fit the
need. The ironic twist of this statement
is that in the right working environment
with supportive leaders, the ERM
professional can be valued tremendously.
In April 2015, the Strategic Risk Council
(SRC)3 discussed where the trend in the
ERM profession was heading. Some
members wondered: If not for their
board or regulatory bodies, would they
be employed? A deeper dive into the
discussions percolated into two ultimate
messages. Members could support each
other in how they demonstrate their
value-added. And, they could encourage
the broader view of the profession as a
synthesizer of critical information, idea
developer, and pursuer of goals. As well,
the SRC highlighted its peer-assisted
self-evaluation initiative, which offers
members a process in which to gain
such support.4
3 The Strategic Risk Council provides the only
national forum for senior risk management
professionals to network with true peers from
diverse industries who face similar challenges
in developing, implementing, and sustaining an
enterprise-wide risk management program.
4 The peer-assisted, self-evaluation initiative
extends and enhances the existing informal
mentoring function within the network. It
involves a single expert, drawn from a pool of
experienced ERM practitioners, supporting an
SRC colleague at a more general level in devel-
oping the ERM program, or when introducing a
new capability, or overcoming a barrier.
7. Risk Watch Spring 2016 The Conference Board of Canada 5
After years of research and public
attention, it is commonly acknowledged
that an employee’s behavioural health
and productivity is intrinsically linked
to an organization’s atmosphere of
work, culture, and leadership values.
Satisfaction of one’s employment is
also linked to good relationships and
open communication with co-workers
and superiors. Furthermore, how
an organization and its leaders
communicate and respond to unexpected
events or uncertainty contributes to how
its employees deal with stress, accept
change, and make intelligent decisions—
both personally and professionally.
It boils down to ERM professionals
needing to be a fundamental pillar of the
team and the organization helping them
cope with job stressors.
Some of these job stressors, which
are also identified by the American
Psychological Association (APA), were
clearly voiced during the interviews
and connected to the work of an ERM
professional. The stressors include:
• conflicting demands or unclear job/
performance expectations;
• lack of sufficient control over job-
related decisions;
• limited opportunities for
advancement and growth;
• lack of social support;
• low salaries;
• excessive workload;
• work that is not challenging or does
not engage the employee.5
Notwithstanding all these stressors and
factors, ERM professionals are, in large
part, an optimistic group. Because they
have hindsight experience, they tend to
5 American Psychological Association, Coping
With Stress at Work.
have great foresight on opportunity. It
is when they have this knowledge of
risk and perceive to be unheard that
they tend to overemphasize the negative
as part of a natural response. For some
ERM professionals, changing how they
perceive themselves and incorporating
positive language within their work may
offer them a better chance of connecting
with the various disciplines in their
organizations.
DIGGING DEEPER INTO
UNCERTAINTY AND TRAUMA
Trauma is about a loss of control and
one’s ability to understand the uncer-
tainty or unsuspected change they face.
From a personal and organizational
context, when an adverse event occurs,
there is a period of shock where one is
taken by surprise and disconnected from
their environment. There is denial of the
situation. A shock to an organization is a
blow to its normal business expectation,
either from extrinsic and/or intrinsic
force(s).
Sam Miller has spent much of his career
focusing on workplace wellness and
trauma. His work has connected him
with brave men and women in uniform.
As well, much of his work has been with
corporate entities to help provide on-site
advice to staff during a period of uncer-
tainty—like restructuring after an eco-
nomic downturn, high-risk termination,
or suicide of a beloved person.
For individuals and organizations trying
to find reason in the face of mounting
stress, trauma, and uncertainty, routine
is important. It is critical that manage-
ment help lead through uncertainty
to maintain operations with minimal
impact to the business itself. During a
Healthy Tips for Coping
With Stress
The 2012 survey by the APA found that
65 per cent of Americans mentioned
work as their main source of stress.
Only 37 per cent of those interviewed
felt they were coping well and able to
manage their stress. What is evident
is that we cannot avoid workplace
stress and must get better at identifying
its sources and ways of coping. Five
healthy tips are to:
1. Keep track of your stressors. By mon-
itoring, we can find patterns among our
stressors, as well as our response to
them.
2. Develop healthier responses. Choosing
healthy responses to replace the often
unhealthy coping techniques we use
(food, alcohol, and inappropriate behav-
iours) will lead to an overall sense of
wellness and control. Some of these
appropriate responses include healthy
eating, exercise, family time, and better
sleep. Learning relaxation techniques
are also a way to respond to, and pre-
vent, the effects of stress.
3. Establish boundaries. We often create
additional stress by not knowing when
to say “no,” and by not letting others
understand that our job duties and
responsibilities are our first priority.
4. Get support. Managing stress is under-
standing that we don’t always need to
deal with stressors on our own. Talk
to your supervisor or colleague. Allow
others to step in and help out.
5. Educate and encourage your organiza-
tion to develop learning sessions on
stress management, work-life bal-
ance, and managing through change.
(See “Practical Reading on Stress and
Coping.”)
Source: Modified by Sam Miller from the article
Coping With Stress at Work by the American
Psychological Association.
8. Risk Watch Spring 2016 The Conference Board of Canada6
structured shutdown, for example, front
line staff might not perform to a stan-
dard needed, thus affecting products and
services. Alternatively, organizations
might experience challenges that would
hinder a successful transition.
With uncertainty—for both the individ-
ual and organization—presenteeism,6
job abandonment, rumors or innuendo,
anxiety, and hostilities, build or are
6 Presenteeism is the act of attending work while
sick. A topic that, at times, is considered its
opposite—i.e., absenteeism—has historically
received extensive attention in the management
sciences. But presenteeism has only recently
found a place in the research literature.
understandably amplified. Normal posi-
tive dynamics—such as collaborations,
teamwork, and quality—suffer because
of sudden, catastrophic, unexpected, or
uncontrollable change. Notwithstanding
being blindsided, organizations and
ERM professionals can also feel the
effects of shock with signs of major
change or when something imminent is
about to happen.
CHANGE-FATIGUE-INDUCED
TRAUMA
Organizations that experience frequent
change due to their competitive environ-
ment or leadership-directed innovation
could experience “change fatigue.” This
is further compounded by an external
shock to the organization. These forces,
together, can burn out staff and give
the perception that leadership-driven
change is “unfocused, uninspired, and
unsuccessful.”7
James Kerr, of Blum Shapiro Consulting,
wrote a wonderful article for Inc.
Magazine comparing “change fatigue”
to the “fog of war.” He describes them
as “ambiguity, emotional overload, and
utter confusion that is experienced by
soldiers and their military leaders when
engaged in constant battle.”8 Kerr goes
on to provide his five tips to soften the
effects of change fatigue:9
1. “Take the time to vet.” Make
sure change is necessary, that a
desired outcome is achievable and
7 Perlman and Kotter, “Change Fatigue.”
8 Kerr, “Beware of Change Fatigue.”
9 Note: “Tip” titles by James Kerr; the descrip-
tions are by Christine Maligec.
acknowledge the toll of change on
the organization.
2. “Take the time to explain the end-
game.” Help everyone understand the
desired outcome and the reasons for
the change.
3. “Take the time to draft a formal pro-
ject plan.” Define the work steps
and schedule as a communication to
achieving success.
4. “Give your ‘usual suspects’ a break.”
Avoid burning out subject matter
experts with the responsibility to
implement projects. Instead, work
on developing this skill in others and
use the “usual suspects” as advisors.
5. “Draw the battle lines.” Focus on bat-
tling your competitors and not each
other within your organization.10
Whether change is good or bad, every-
one can get on board and transition into
the next chapter. Our capacity to absorb
and manage change varies according to
the importance and time each person is
willing to give to it. If the change is of
your own volition, a surprise, or your
responsibility to plan, it is important to
recognize the phases of change. William
Bridges’ Transition Model is a change
management tool that helps us to under-
stand the process humans go through
when dealing with change. It guides
people from the onset to the conclusion
of change while mitigating the long-
term impact. (See “Three Phases of the
Human Process Change.”)
10 Kerr, “Beware of Change Fatigue.”
Informational and Practical
Reading on Stress and Coping
Why Zebras Don’t Get Ulcers: An
Updated Guide to Stress, Stress-Related
Diseases and Coping by Robert Sapolsky,
PhD. New York: W.H. Freeman, 1994.
A Mindfulness-Based Stress Reduction
Workbook by Bob Stahl, E. Kabat-Zinn,
and S. Santorelli. Oakland, CA: New
Harbinger Publications, 2010.
Undoing Perpetual Stress: The Missing
Connection Between Depression, Anxiety
and 21st Century Illness by Richard
O’Connor, PhD., 2006.
Manage Your Time to Reduce Your
Stress: A Handbook for the Overworked,
Overscheduled, and Overwhelmed by
Rita Emmett. London, U.K.: Walker
Books, 2008.
Don’t Sweat the Small Stuff—And It’s
All Small Stuff by Richard Carlson. New
York: Hyperion, 1997.
Stress-Free for Good: 10 Scientifically
Proven Life Skills for Health and
Happiness by Fred Luskin and Kenneth
R. Pelletier. San Francisco: Harper, 2006.
Source: Suggestions by Sam Miller.
9. Risk Watch Spring 2016 The Conference Board of Canada 7
WELL-BEING, WELLNESS, AND
THE MINDFUL ORGANIZATION
There is certainly a connection between
the well-being11 of employees and
that of the organization. Some of the
indicators and patent costs of stress
to an organization include presentee-
ism, absenteeism, disengagement, early
retirement, and resignation.
However, an indicator typically over-
looked is benefit costs. Work-related
stress could affect an employee’s health,
predominantly when coupled with
chronic conditions such as mental health,
migraines, heart disease, and metabolic
disease. Eventually the impact of stress
can manifest itself into an emergency
situation that requires reflection and
instilling a positive change.
One of the best leadership examples
of this situation is the story Arianna
Huffington recites in her book Thrive.
She tells the story of waking on the floor
in her office with a “broken cheekbone
and nasty gash over her eye; the result of
a fall brought on by exhaustion and lack
of sleep.”12 Huffington realized these
were symptoms of a bigger problem—
that success was literally killing her.
Money and power were the traditional
measures of success that guided
Huffington to being one of the most
successful women in media. In media
interviews and speaking engagements,
Huffington “… likened her drive for
11 Well-being and wellness are sometimes used
interchangeably. For this article, we see well-
being as one’s mental state and wellness
relating to one’s physical aspects of health and
lifestyle. Sleep, exercise, resiliency, and mind-
fulness play significantly in achieving a sense
of well-being and wellness.
12 Huffington, Thrive.
money and power to two legs of a three-
legged stool. They may hold us up tem-
porarily, but sooner or later, we’re going
to topple over. We need a third leg—a
third metric for defining success—to
truly thrive. That third metric, she writes
in Thrive, includes our well-being, our
ability to draw on our intuition and inner
wisdom, our sense of wonder, and our
capacity for compassion and giving.”13
It was not until she added “mindfulness”
that she found her true metrics for suc-
cess and happiness.14
MINDFULNESS 101
What is mindfulness? Mindfulness is a
way of being—a quieting of the mind
where it can relax, restore, and repair.
It requires people to consciously self-
regulate their mind and body for balance
so that they can make kind, healthy, and
long-term decisions about how they live.
Another way to look at it is “paying
attention on purpose to whatever is hap-
pening in the present moment (internally
and externally) from a stance of curios-
ity and non-judgment.”15
Modern research into mindfulness is
beginning to show us how using mindful
practices could create positive physical
change in our brains. The amygdala is
the emotional response centre of our
brain and the part responsible for the
survival of our species—especially the
fight-or-flight response. It is because of
this ingrained survival instinct our brain
perceives “negative stuff” as having
13 Ibid.
14 Ibid.
15 Martin, “The 3 Types of Mindfulness.”
importance and gives it an immediacy
for response.16
The amygdala receives signals from
sensory systems and other higher order
parts of the brain and connects them
to external information, previous asso-
ciations, or conditioned stimuli.17 In
a world filled with sensory overload,
stress hormones like adrenaline and
16 LeDoux, “The Amygdala in 5 Minutes.”
17 Ibid.
Three Phases of the Human
Process Change
1. Ending, Losing, Letting Go. It is during
this period of uncertainty that, without
additional information or support, we can
experience the fear, confusion, sadness,
and numbness that come with change.
The first steps in the change process are
to have an open conversation on change,
empathize that change can be difficult,
and acknowledge that help with the
change is available.
2. The Neutral Zone. In this phase,
people acknowledge change but still
might not understand the journey—
or they are impatient for the outcome.
Communication and comprehensible
direction is important during this phase
to maintain clarity and to work toward
a common goal. Ongoing feedback and
celebrating small successes will help to
keep a positive light on change and pro-
vide motivation.
3. The New Beginning. With the path
cleared of the past and the journey con-
quered, we can see the outcome of all of
our work. This might open the door to
doing things differently, having a positive
effect on the organization, and growing
as a mindful professional.
Source: Mind Tools, Bridges’ Transition Model,
Guiding People Though Change. Note: The titles are
by Mind Tools; the descriptions are by Christine
Maligec.
10. Risk Watch Spring 2016 The Conference Board of Canada8
cortisol can overtake one’s well-being.
This modern medical phenomenon has
been named the “amygdala hijack” by
Daniel Goleman in his book, Emotional
Intelligence.18
It is this excessive or overproduction
of cortisol that is linked to increased
blood sugars and shuts down or alters
non-essential services in the fight-or-
flight response. These non-essential
services include our immune, digestive,
and reproductive systems, and growth
process.19 As well, the constant stimu-
lation of adrenaline can cause chronic
fatigue or tiredness, pain, fuzzy thinking,
weight gain, depression, cravings, and
mood swings.20
Mike Christian, an assistant professor
of organizational behaviour at the
University of North Carolina’s Kenan-
Flagler Business School, researches the
mind-body connection at work. One
of his research projects delved into
mindfulness and mental energy. He
concluded that:
• “…being in the moment can help
mitigate the effects of unfairness on
our fight-or-flight response.”
• “Our ability to self-regulate is influ-
enced by various external and inter-
nal factors. The way leaders act, and
whether or not people perceive these
actions as fair, can affect people’s
reserve of energy.”
• “People who are mindful … are better
able to control their thoughts and are
less quick to react.”
• “…just perceiving that you have con-
trol over your job gives you more
18 Goleman, Emotional Intelligence.
19 Mayo Clinic Staff, Chronic Stress.
20 Pick, “Adrenal Health in Women.”
energy—that this experience acti-
vates what we call your behavioural
approach system, which controls
goal-oriented behaviour.”
• “…on days when people feel like
their jobs are meaningful and
important—when they feel like the
work they’re doing affects others in a
positive way—people invest more in
themselves.”21
When we combine the part of our brain
that protected us from fire and preda-
tory animals with our modern context
for harm (or risk), it is easy to see how
someone can be stuck in a pattern of
negative thinking. Taken a step further,
one can also see why risk professionals
may enter into conflict with others who
might not have the same risk context,
thinking, experiences, or readings of les-
sons learned.
TYPES OF MINDFULNESS AND
POSITIVE OUTCOMES
Different forms of mindfulness work for
different people. Most mindfulness is
focused on various styles and techniques
of mindfulness meditation. However,
other forms—which can and are prac-
ticed together—include mindfulness
exercises like yoga and breathing exer-
cises, self-awareness/help books, and
mindfulness music.
Mindfulness meditation is not just a
fad. Many consider meditation an art
form dating from approximately 5,000
to 3,500 BC in the Hindu culture, but it
is also noted in other religious writings
and teachings.22 However, Jon Kabat-
Zinn—professor of medicine emeritus;
a student of Buddhist teachings; and
21 Geller, “Mike Christian on Mindfulness and
Mental Energy.”
22 Puff, “An Overview of Meditation.”
creator of the Stress Reduction Clinic
and the Center for Mindfulness in
Medicine, Health Care, and Society at
the University of Massachusetts Medical
School—is credited with integrating
these teachings into science.
Many organizations are incorporat-
ing mindfulness as a secret ingredient
to their success, as well as providing
time for yoga or mediation practice.
Companies are also embedding mindful-
ness into corporate wellness programs
and decision-making. This ensures a
thoughtful pause to focus and reflect
before taking action that may adversely
influence the business, its customers, or
its people.
Take, for example, how mindfulness is
used in public service. Teaching is a
well-established yet very stressful pro-
fession. Dealing with challenging situa-
tions with students and parents can “add
to a teacher’s daily stress level that, over
time, can lead to burnout.”23 This has
led to research on introducing mindful-
ness into the education system. A recent
study on “mindfulness-based interven-
tions show[s] promise in reducing stress
and increasing well-being by cultivating
mindfulness and self-compassion.”24
The use of mindfulness in a teaching
environment with an embedded, mind-
fulness-based, kindness curriculum has
also had a positive outcome on “grades
in domains of learning, health, and
social-emotional development.”25
23 Zakrzewski, “Can Mindfulness Make Us Better
Teachers?”
24 Beshai and others, “Non-Randomised
Feasibility Trial.”
25 Flook and others, “Promoting Prosocial
Behavior.”
11. Risk Watch Spring 2016 The Conference Board of Canada 9
Michael Carroll, a mindful leadership
consultant,26 combines his 25 years of
business experience with the wisdom
of Buddhism. His approach to mind-
ful leadership is about creating a saner
world, leading to collective awareness,
inspiration, and decency. Carroll wrote
The Mindful Leader, in which he shares
10 talents of a mindful leader and how
to cultivate them through mindfulness
meditation. (See “Ten Talents of a
Mindful Leader.”)
Risk professionals are leaders not only
in evolving their profession but also in
leading organizations through an enter-
prise-wide risk management effort. If
ERM professionals know where they’re
going and how to get there, but not
where they are and what they have now,
they are lost.
Interesting research by Leonard L.
Riskin, in 2002, shows that profession-
als whose work tends to focus on exter-
nal factors—such as rules, standards,
and guidance—or who place them in
constant adversarial or challenging
mindsets, found that mindfulness helped
manage stress and gain more satisfaction
from work.27
In the YouTube video of Carroll speak-
ing with Google, the leadership con-
sultant describes some key aspects of
mindful leadership as it applies to organ-
izations. Carroll’s main messages are:
1. We cannot define success simply by
achieving objectives. Most leaders
want to get from point A to point B
quickly, efficiently, and profitably.
However, we must connect our world
26 Carroll, The Mindful Leader: Ten Principles.
27 Riskin, “The Contemplative Lawyer.”
with the organization to inspire, be
aware, and develop the collective
practice of being present and sane
without tripping over ourselves.
2. We need to rest in the moment to
discover our talents and lead. We
live in a culture of “never enough.”
We quickly apply our efforts in try-
ing to achieve things or to go some-
where. We believe it is about speed,
being smarter, or outstrategizing. Yet,
we are so blinded in our effort to
get somewhere fast that we overlook
who we are and where we are.
3. We take our minds—our greatest
tool—for granted. Leadership train-
ing is about going to conferences,
weaving strategies together, access-
ing more sophisticated tools, and
developing different views. Mindful
leadership is about training your
mind in a specific way. It comes
back to self-regulating, resting, and
living in the present.28
When mindfulness has been embed-
ded into professions or organizations,
most studies seemed to have positive
outcomes. Google, for instance, has an
emotional intelligence program called
“Search Inside Yourself.” It trains your
attention, develops self-knowledge and
self-mastery and creates useful mental
habits.29 However, researchers have
only scratched the surface on looking
at increased organizational perform-
ance over time. The good news is that
mindfulness is now mainstream, and
organizations can makes changes to their
wellness programs to include certain
styles and techniques of mindfulness.
INDIVIDUAL RESILIENCY:
CHARACTERISTICS NEEDED FOR
THE ERM PROFESSIONAL
Rosabeth Moss Kanter in her arti-
cle, “Surprises Are the New Normal:
Resilience Is the New Skill,”30 points
out that great leaders and successful
companies understand that you cannot
avoid troubles or potential pitfalls. Even
successful companies get blindsided by
market variables or other companies and
are forced to play catch-up. The real
skill is in being resilient—climbing out
of a hole, bouncing back, and thriving.
ERM professionals must possess certain
qualities to survive and thrive within
their organizations. Interestingly enough,
ERM is about helping organizations
deal with those risk factors. Essentially,
28 Carroll, “‘The Mindful Leader’|Talks at Google.”
29 Essig, “Google Teaches Employees.”
30 Moss Kanter,”Surprises Are the New Normal.”
Ten Talents of a Mindful
Leader
1. Simplicity: getting to the cushion
and practicing mindfulness medita-
tion
2. Poise: gathering the mind
3. Respect: touching our hearts
4. Courage: letting go of thoughts
5. Confidence: opening to what is
arising
6. Enthusiasm: leaping into uncertainty
7. Patience: biding in the present
moment
8. Awareness: glimpsing open space
9. Skillfulness: extending out off the
cushion
10.Humility: dissolving the fixed sense
of self and others.
Sources: As posted on Habits for Wellbeing,
www.habitsforwellbeing.com/what-are-the-
top-10-talents-of-a-mindful-leader/, and taken
from Carroll, The Mindful Leader: Awakening
Your Natural Management Skills Through
Mindfulness Meditation.
12. Risk Watch Spring 2016 The Conference Board of Canada10
we are talking about the resiliency of
employees tasked with helping their
organizations be resilient.
Resilient individuals need to be flexible
and confident. In order to learn from
mistakes, one needs accountability, col-
laboration, and initiative—the three
components of confidence. Resilience
draws on strength of character from a
core set of values and beliefs that motiv-
ate people to overcome setbacks and
resume their quest for success.
Much has been researched and written
about the characteristics of resilient
people. Dean Becker, President and
CEO of Adaptiv Learning Systems,31
states that the one factor most important
in determining who succeeds and who
fails is a person’s level of resilience.
This is more important than education,
experience, and training. Diane Coutu
looks at three characteristics of resilient
31 Adaptiv Learning Systems are specialists in
resilience training. For more information, visit
www.adaptivlearning.com.
individuals: a staunch acceptance of
reality, a deep belief often strengthened
by strongly held values, and the ability
to improvise.32
In the business world, resilient people
are realistic and down-to-earth in their
understanding of those parts of reality
that matter for survival. A realistic—
almost pessimistic—sense of reality is
important. When we stare down real-
ity, we prepare ourselves to act in ways
that allow us to cope with and survive
through all sorts of hardships.
Understanding your reality is closely
tied to the second characteristic of resili-
ence, which is making meaning of ter-
rible situations. This is the way resilient
people build bridges from their current-
day hardships to a fuller, richer, and bet-
ter-constructed future. It is these bridges
that make the difficult times manageable
and less overwhelming. Values that we
use to buttress our beliefs are character-
istic of resilient companies as well. The
value systems of resilient companies
change very little over the years and are
used by the companies as scaffolding in
times of trouble. The third characteristic
of improvisation is the ability to make
do with whatever is available to role
with the punches. Companies that sur-
vive view improvisation as a core skill.
Dr. Smita Malhotra talks about five
characteristics of resilient people.
These people:
• practice mindfulness;
• don’t compare themselves to others;
• understand that after every
big setback is an even bigger
transformation;
32 Coutu, “How Resilience Works.”
• find humour in everything;
• do not try to control their lives.33
At the end of the day, all these character-
istics help ERM professionals cope with
many of the concerns that were voiced
during our interviews and follow-up
discussions. For more reading on resili-
ence, see “Informational and Practical
Readings on Resilience.”
ORGANIZATIONAL RESILIENCY:
HALLMARKS TO ACHIEVE
Karl Weick and Kathleen Sutcliffe have
written several editions of their primary
book, Managing the Unexpected. In
them, they discuss the five hallmarks
of high-reliability organizations (HRO).
“These hallmarks make up what [they]
have termed ‘mindful organizing.’”34
Easily, one can see how these hallmarks
of ‘mindful organizing’ are relatable
to the ERM profession and the ERM
professional.
1. “Preoccupation with failure.” It is
time to make ERM about more than
just filling out a risk register every
year. HROs use a combination of
environmental scanning, data ana-
lytics, surveys, and other tools to be
able to look at the signals that intro-
duce uncertainty, which could have
an adverse outcome.
2. “Reluctance to simplify.” With sim-
plicity, ERM professionals miss
the big picture. “Knowing that the
work they face is complex, unstable,
unknowable, and unpredictable, they
position themselves to see as much
33 Malhotra, “The 5 Characteristics of Incredibly
Resilient People.”
34 Weick and Sutcliffe, Managing the Unexpected:
Sustained Performance in a Complex World.
Informational and Practical
Readings on Resilience
Resilience: Why Things Bounce Back by
Andrew Zolli and Ann Marie Healy. New
York, NY: Simon & Schuster, 2013.
Resilience: Hard-Won Wisdom for Living
a Better Life by Eric Greitens. Boston:
Houghton Mifflin Harcourt, 2015.
The Survivor Personality by Al Siebert,
PhD. New York, NY: Perigee Trade, 1996.
The Big Little Book of Resilience by
Matthew Johnstone. Tuggerah, New
South Wales: Pan Macmillan Australia,
2015.
Source: Suggestions by Sam Miller.
13. Risk Watch Spring 2016 The Conference Board of Canada 11
as possible. They encourage bound-
ary spanners who have the diverse
experience, skepticism toward
received wisdom, and negotiating
tactics to reconcile differences of
opinion without destroying the nuan-
ces that diverse people detect.”35
3. “Sensitivity to operations.” “The
big picture in HROs is just as
operational as it is strategic.”36
Understanding the data, context,
and objectives of the organization
in order to understand when ideal
conditions are changing is import-
ant. Weick and Sutcliffe provide an
interesting insight through story for
this hallmark relatable to the ERM
professional. For their own success,
ERM practitioners should be mindful
that other business units or leaders
might have a higher priority, thus
putting the role of ERM in conflict
with short-term success.
4. “Commitment to resilience.” HROs
learn from failure (their own and
others), challenge perception along
with assumption, and can anticipate
change as part of their commitment
to resilience. “The essence of resili-
ence is therefore the intrinsic ability
of an organization (system) to main-
tain or regain a dynamically stable
state, which allows it to continue
operations after a major mishap and/
or in the presence of a continuous
stress.”37
5. “Deference to expertise.” HROs
understand that not all deci-
sions need to be made at the top.
Delegated authority is driven “down
and around” to solve problems at
35 Ibid.
36 Weick and Sutcliffe, Managing the Unexpected:
Sustained Performance in a Complex World,
3rd ed.
37 Ibid.
the source. Diversity in experience
is recognized as strength on the
bench, provides support to adapt
quicker to a changing environment
or crisis, and avoids being trapped in
groupthink.38
RESILIENCE WITHIN THE
ORGANIZATION AND FOR THE
ERM PROFESSIONAL
Humans are creatures of habit and have
a great deal of resiliency—just like most
organizations. At the end of the day,
there is stress brought on by a number of
factors that we may or may not be able
to control. What we can control is how
we recognize and react to the stress.
To lessen the impact, ongoing and open
communication is important. Not just for
front line staff, but for leadership. Being
able to communicate in a transparent
and reciprocal manner not only helps
everyone cope, but creates hope.
Where one can start planning, one can
start controlling. Even when faced
with uncertainty and the prospect of a
negative outcome, it is possible to act
on previously discussed scenarios or
respond using the best information avail-
able. Reframing ERM into a different
language—such as change management,
organizational wellness, or organiza-
tional resiliency—may take away from
the negative connotation of risk.
Knowing that one is not alone in his or
her frustrations should also be a source
of comfort. ERM colleagues, who work
at different organizations, are a great
resource to rethinking a situation or
38 Ibid.
problem and taking a different approach
to risk. Collaborating on new tools or
work products helps boost individual
confidence and heightens the image of
the ERM profession, particularly when
needing to substantiate or benchmark
success—or even failure.
We hope that, at a minimum, this
article created an “ah ha! reflection” or
brought about a deeper understanding
of the challenges and stressors facing
ERM professionals in the continuously
changing risk landscape.
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14. Risk Watch Spring 2016 The Conference Board of Canada12
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Christine Maligec
Risk Officer
Alberta Blue Cross
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