Identifying and Utilizing Emerging Risks to Create Value
Enterprise Risk Management (ERM) programs are not a new concept. Generally speaking, ERM programs are formal frameworks that enable decision makers to identify key risks, assess their likelihood and potential impact, create a response plan and then monitor progress.
Many organizations – particularly those in highly regulated industry sectors – have been running formal ERM programs for years. At larger or more sophisticated organizations, ERM programs have started to move towards automation with key data points and indicators being tracked automatically (and, increasingly, in real-time on dashboards).
However, at many organizations, Boards and executives are starting to ask how they could be obtaining more value from their existing ERM programs while, at the same time, looking for ways to turn their risk register into a source of new opportunity.
More recently, some organizations have started to explore how they might better leverage their existing ERM program investments to identify and develop new opportunities rather than focusing solely on monitoring and managing known risks. The reality is that ERM programs are most valuable in times of disruptive change or when organizations are faced with an urgent need to do something ‘different’ in the marketplace to preserve or add value.
This presentation will discuss how to better identify emerging risks by paying attention to signals of change and coming disruptors that may have a significant impact on an organization’s products or services, customer demands, supply chain, etc. It will provide a tangible mechanism to finally dealing with the “upside of risk”, turn risks into opportunities, and how to utilize risk when setting strategy.