Preventing Metrics from Replacing Your Strategy

To combat the abstract nature of organizational strategy, performance metrics are often employed to evaluate effectiveness of efforts to achieve strategic objectives. This can lead some employees to mentally emphasize the need to meet performance metrics, rather than strive to achieve the strategy itself. When this occurs, people are more likely to engage in unethical business practices in response to pressure from management to accomplish the entity’s goals. A recent article published by Harvard Business Review discusses the issue of surrogation and recommends approaches to avoid the consequences related to it. Also provided is an overview of the Wells Fargo consumer banking event and what they are doing now to mitigate the risk that it will reoccur. Read More

Embracing the Future Workforce

According to a recent publication by PwC entitled “Workforce of the Future,” rapid technological advancements will drastically change the structure of the workforce in the next ten years. Most companies will soon begin (if not already) utilizing automation and artificial intelligence to replace traditional human jobs, but this does not mean that humans will be left without work. Instead, companies must work tirelessly to leverage and align human skills such as leadership, empathy, creativity, and innovation with technological advancements. If companies want to succeed in an increasingly digital world, they must understand the risks and opportunities associated with the future workforce. Read More

Categorical Thinking

Categorical thinking is an “old-school” thinking style and change is necessary in order to succeed in the modern day economy. A recent article from Harvard Business Review provides an in-depth analysis of the four most important dangers created by categorical thinking through a series of real-world examples and studies. The authors propose a simple four-step process to combat those dangers and best prepare business leaders for the next wave of the data revolution. Read More

Executive Perspectives on Top Risks for 2020

Just in case you missed it…the ERM Initiative, in partnership with Protiviti, recently released its eighth annual research report highlighting top risks for 2020 on the minds of 1,063 board members and executives globally, across a variety of industries. This study summarizes executive perspectives about 30 different macroeconomic, strategic, and operational risks for 2020. While the study provides extensive analysis for the full sample, it also includes a number of sub-analyses about risk perspectives across different sizes of organizations, industries, geographies, types of organizations, and positions of individuals responding. Organizations are using this report to benchmark against risks identified through their own ERM processes. Download Report

Preparing for an Uncertain Future: Scenario Planning and War-Gaming

A more informed, risk intelligent leadership team puts an organization in the best position to plan for and manage risks, take advantage of opportunities and be flexible enough to respond as the environment changes and risks arise in the future. In doing so, an organization can engage in various strategic initiatives and risk management efforts to identify and mitigate the impact of uncertain futures. A recent thought piece by Deloitte outlines two tools to help companies think outside the box and perform a “what-if” analysis to gain a wider view of future events that could impact an organization’s ability to achieve its strategic objectives.  Read More

New ERM Fellow Designation

The ERM Initiative at North Carolina State University is pleased to announce an exciting new opportunity for ERM professionals to earn their ERM Fellow designation. The NC State ERM Fellow designation signifies achievement of an exemplary level of executive education in the field of Enterprise Risk Management (ERM), a commitment to ongoing education on current practices in ERM, and membership in a network of ERM professionals engaged in advancing value-adding ERM processes within and across industries. Executives who complete a series of ERM courses and workshops are eligible to obtain the ERM Fellow designation.  Read More

Strengthening Focus on Emerging Risks and Leveraging Design Thinking Skills

Boards of directors and executives seek ERM programs that add value by helping leaders identify and manage new risks that may be emerging. Join us for our Spring 2020 ERM Roundtable Summit where a number of speakers will share insights to help stretch our thinking about how we can be more effective at seeing risks on the horizon. We’ll hear from the Chief Risk Officer at Duke Energy about techniques they use to keep a pulse on the range of potentially emerging issues, and we will gain insights from subject matter experts in the Urban Investment Strategies Center at UNC-Chapel Hill about a disruptive demographic trends on the horizon that are likely to impact businesses over the next decade. We will also hear from an expert in the College of Design about how design-thinking techniques can help ERM leaders develop a more holistic, enterprise view of risks on the horizon. Register and begin earning credits towards an ERM Fellow Designation. Register Today

How Corporate Responsibility Creates Value

According to a report, “ESG in the Mainstream: The Role for Companies and Investors in Environmental, Social, and Governance Integration,” published by BSR, a leader in corporate responsibility thinking, embracing corporate social responsibility is no longer an option. Research shows that corporate social responsibility (CSR) creates value and can strengthen long-term performance for organizations. Integration of CSR activities may support an organization’s ability to identify risks and achieve its strategic objectives.   Read More

Predictive Risk Intelligence Strategies

The concept of Predictive Risk Intelligence, or PRI, is the future of risk management. A recent Deloitte article introduces the concept, explains monitoring methods and provides examples as to how advanced analytics can help organizations prepare for emerging risks by leveraging both internal and external data sources. This concept can provide value in many ways such as reducing manual intervention and the potential for human error and helping companies predict risk before the loss event occurs.  Read More

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ERM Enterprise Risk Management Initiative 2020-01-30