It is difficult not to analyze what your competitors are doing. Furthermore, it is also difficult to avoid getting caught up on existing mandates and isolated risks. According to an article on Insider Profiles, implementing a true enterprise risk management strategy involves really looking at your organization’s core business and deciding how that capability could be ruined. This should give you the answer as to what the framework for your enterprise risk management program should look like:
This is one of the key takeaways from a recent research project conducted for SAP by insiderRESEARCH. A survey of 220 risk-focused SAP customers found that even though executives and board members understand the importance of risk management, current approaches to address it are missing the mark. Companies are too concerned with meeting compliance goals and not spending enough time gathering and analyzing business-focused risk data from users across the enterprise.
Studies show that most organizations have the ability and the necessary data to redefine risk management. The trick is to properly convey the information to different people in different and individually appropriate formats. This is, unfortunately, much easier said than done. The truth is many organizations are sticking to old and out of date systems that they simply are not taking the time to update.
Enterprise risk management is no simple thing. It must take into consideration multiple levels of the organization working together. This requires a great deal of internal communication, which is not always the easiest thing in the world. However, it is well worth it to put the time into improving your enterprise risk management system despite the difficulties you may face.