Often times executives brush off any ERM initiative by stating they have smart people on the board or on management teams. David Hughes, Assistant VP of ERM and Business Continuity Planning at Hospital Corporation of America (HCA) explains how boards and senior executive may miss the identification of certain strategic risks because they are not “on the ground” interacting with customers and business operations. He emphasizes the importance of obtaining input about risk exposures from multiple levels of management to ensure the identification of the entity’s most significant strategic risks. He also speaks about how important it is for CEOs to embrace an ERM process and see the value in taking time to look at risk through a strategic lens.
October 2, 2012