Positioning ERM for Strategic Value

In this ERM expert video, Kristy Hubard of Novant Health System shares insights about their organization’s ERM journey as they manage a healthcare system spread across a number of states in the southeastern United States.

Integration of ERM and Strategy

Kristy shares about how they have integrated ERM with strategic decision making to help create a risk mindset that can be used to help promote and achieve strategic objectives.

Input from across the system about risks comes through interviews and surveys to obtain a robust perspective on risks that executives see as getting in the way of execution of strategy.

A key goal of ERM is to help the leadership be transformative in how they deliver healthcare in the future.

Articulation of Risk Appetite

The ERM process has worked to help the leadership team articulate its appetite for taking risks across different dimensions of the organization’s business model and strategy. They are working to help disseminate those risk tolerances to decision makers across the system so they can apply that in day-to-day decision making.

Risk Committee

Novant Health’s management-level risk committee is a cross functional group that includes both key clinical leaders and support functions, such as IT and legal, who come together to make sure everyone on the committee has a holistic purview of risks across the organization.

The committee reviews the risk register and related response plans on an ongoing basis, with particular focus on a rotating list of 2-3 specific risks at each meeting throughout the year.

ERM is a Marathon

Management recognizes that ERM is a marathon and not a sprint. Novant’s risk management efforts are focused on the top risks and they are continuing to evolve the ERM processes, particularly the evolution of leading and lagging key risk indicators. There is a focus on constant evolution of ERM for greater value.

ERM’s Value

The dialogue around risks is where they are seeing real value in ERM. Getting a handle on risks they are facing, how they are being managed and monitored. Given the rapid pace of change in healthcare, it is the perfect time for ERM to be at the table.