Extended enterprise risk management (EERM) is focused on exploring the upside of risk and on demonstrating tangible benefits of investments in enterprise risk management programs. As the technological world becomes more interconnected, organizations are centralizing EERM roles, structures and technologies. This centralization presents risks and problems that must be addressed tactically, with internal personnel engaging executives and board members who are ultimately held accountable for EERM initiatives and decision-making.
With a challenging year of political and economic uncertainty now behind us, US corporate boards are turning to priorities for 2019 — a year likely to bring more volatility and disruption. With the board agenda packed and the roles and expectations of directors continuing to grow, a company’s board is expected to play a more active role than ever before. In looking ahead, author Stephen W. Klemash identifies five priorities that boards should focus on.
In this survey report, over 1,000 professionals primarily based throughout the U.S. and from a wide variety of industries completed The Littler® Annual Employer Survey via an online survey tool. This report summarizes and analyzes the results of the annual survey of the legal, technological and social issues believed to have the greatest impact on the workplace. It is based on survey responses from 1,111 in-house counsel, human resources professionals and C-suite executives.
NASA. Volkswagen. BP. It’s not hard to find examples of quality gone awry. The consequences of the Challenger disaster, VW’s Dieselgate, and the Deepwater Horizon were tragic and far-reaching. While these are some of the most well-known incidents, stories of quality failures are numerous and almost constant. In many cases, preventing problems is a complex interplay of factors and stakeholders. But one thing is certain. Pretending that nothing unfortunate will happen is not the way to prevent disaster; a quality system should not depend on luck. Risks are ever-present and it pays dividends to think about them before they happen. Risk based thinking is one solution. It’s one of the big changes in the ISO 9001 update, but more than that, it’s a way to prevent problems before they occur and improve the business along the way. Avoiding risk doesn’t just mean being cautious. It’s about maximizing opportunities.
Companies today are exposed to an ever-more-complex array of risks and uncertainties, which are only set to accelerate in the years to come. Whether driven by geopolitical events, volatile financial markets, technology developments, cybersecurity threats, data privacy concerns, or climate change, coping with accelerating change is no longer an advantage, but a necessity. In particular, businesses have more data than ever, but often they don’t have the full range of capabilities required to analyze that data and turn it into insights on risk mitigation and probability. Enterprises need someone to take the lead in breaking the data, and the risk management functions it informs, out of the siloes they sit in today. There is no one better placed than the modern CFO to take on this job — and no one with a more pressing need to make sure that job is done right.
In this report, PwC explores how risk leaders can effectively manage innovation-related risk and by effectively doing so, drive growth and performance within their organizations. Key actions include establishing a stronger connection between an organization’s risk management program and corporate strategy and periodically reviewing and adjusting risk appetite and tolerances to align with innovation risk.
The Wells Fargo scandal stands as a poignant example of what can happen when company leadership sets the wrong kinds of incentives for employees. It’s such a great example of misalignment because, at some level, we all understand and have significant exposure to the retail banking system. Even if you are not a Wells Fargo customer, it’s easy to empathize with them and see how the corporate ship veered off course. But the lesson is not new or novel. History is replete with examples of misguided corporate incentives undermining culture—from the Dutch East India Co. to Enron—second verse, same as the first. Board oversight is a familiar theme.
Over the last decade, corporations have begun paying increased attention to issues involving sustainability and risk oversight, and linking these efforts to an organization’s strategy. Research and thought papers now are addressing the growing challenges related to water scarcity, resource availability, climate disruption, waste reduction, and corporate responsibility. Many organizations have embraced the new sustainability movement, but have discovered a wide-range of challenges before them. These initiatives sometimes appear as disjointed, or misunderstood, which lead to a number of problems when getting started.
Read ERM articles as soon as we post them
Keep up-to-date with current developments in ERM. Subscribe to the ERM Newsletter.