An ERM Wake-up Call

The Risk and Insurance Management Society released a white paper this week that examines the role of Enterprise Risk Management in the current financial crisis.  The paper highlights a number of lessons learned that can be applied to companies in all industries, not just financial institutions.   Here is a summary of those lessons learned:

Ultimately, when we look for a cause of the current financial crisis, it is critical to remember that organizations failed to do a number of things:

a) truly adopt an enterprise risk management culture

b) embrace and demonstrate appropriate enterprise risk management behaviors, or attributes

c) develop and reward internal risk management competencies, and

d) use enterprise risk management to inform management decision-making in both taking and avoiding risks.

Enterprise risk management, when designed and implemented comprehensively and systemically, can change future outcomes. When it is practiced fully, enterprise risk management does not just help protect businesses from setbacks, it enables better overall business performance. With that in mind, and with so much economic uncertainty on the horizon, now is the perfect opportunity for organizations to use the many strengths of a solid enterprise risk management program to their advantage.

Wheelhouse Advisors is uniquely equipped to help companies implement a solid enterprise risk management program in a cost-effective way.  Visit www.WheelhouseAdvisors.com to learn more.