登录查看更多内容

How can you align your organization's ERM and crisis management plans with its budget and resources?

由人工智能和领英社区提供技术支持

Enterprise risk management (ERM) and crisis management are two essential components of a resilient organization. However, implementing and maintaining them can be challenging, especially when you have limited budget and resources. How can you align your ERM and crisis management plans with your organizational goals and capabilities? Here are some tips to help you optimize your risk and crisis preparedness.

此文章中的业界达人

由社区从 8 条内容中精选。了解更多

Rianovel Mare

Create impact, leverage values | Strategy Consultant

1 Assess your current state

Before you design or update your ERM and crisis management plans, you need to have a clear picture of your current risk profile, exposure, and appetite. This means conducting a comprehensive risk assessment that covers all aspects of your organization, such as strategic, operational, financial, legal, reputational, and environmental risks. You also need to identify your existing risk controls, mitigation strategies, and crisis response capabilities. This will help you determine your risk gaps, priorities, and improvement areas.

添加您的观点

加载更多内容

2 Align your plans with your objectives

Your ERM and crisis management plans should support your organizational objectives and vision, not hinder them. Therefore, you need to align your risk and crisis policies, processes, and practices with your strategic goals and values. For example, if you want to expand into new markets, you need to consider the potential risks and opportunities of doing so, and how your ERM and crisis management plans can facilitate or mitigate them. You also need to ensure that your plans are consistent and coherent across your organization, and that they reflect your risk appetite and tolerance levels.

添加您的观点

Peter Moore

Cyber Security Risk Consultant
举报内容
Firstly understand your businesses goals and obhectives. Then establish your risk appetite and risk tolerance. Then make decisions around what your business is prepared to do do to meet its objectives.

已翻译

赞
Leonardo Tadeu

Head of Compliance | Regulatory | Integrity | Anti-Money Laundering | Governance | Audit | Specialist in Risk Management and Internal Controls | Fraud Prevention | Information Security | IT | Privacy and Data Protection
举报内容
ERM policies must direct crisis management processes as part of corporate risks, mainly in relation to 1) guidelines for identifying, treating, communicating and mitigating relevant crises and 2) processes for normalizing activities and eventual communications to interested parties. In terms of budget and resources, the adoption of corporate governance, ERM and crisis management practices needs to be proportional to the relevance of the service provided by the organization and the risks to which they are exposed. Resource and budget needs must be compatible with risk appetite, regulatory and business environment. Aligning needs with shareholders, risk committees and board, HR and finance are ways to obtain financial commitment.

已翻译

赞

加载更多内容

3 Optimize your budget and resources

Your ERM and crisis management plans should be realistic and feasible, given your available budget and resources. You cannot afford to overinvest or underinvest in risk and crisis management, as both can have negative consequences. Therefore, you need to optimize your budget and resources by prioritizing the most critical and impactful risks and crises, and allocating them accordingly. You also need to leverage your existing assets and capabilities, such as your staff, technology, data, and partnerships, and enhance them as needed. Moreover, you need to monitor and measure your risk and crisis performance and outcomes, and adjust your budget and resources as necessary.

添加您的观点

Rianovel Mare

Create impact, leverage values | Strategy Consultant
举报内容
One effective method is through risk-based budgeting, where financial resources are allocated in accordance with the likelihood and severity of identified risks. By conducting thorough risk assessments and prioritizing risks based on their potential impact on the organization's objectives, the organization can ensure that budgets are aligned with the most significant threats. This approach involves identifying high-risk areas and allocating resources accordingly, whether it involves investing in risk mitigation measures, crisis response capabilities, or insurance coverage. Additionally, organizations can leverage scenario planning and stress testing to anticipate potential crises and allocate resources preemptively to enhance preparedness.

已翻译

赞

加载更多内容

4 Engage your stakeholders

Your ERM and crisis management plans should not be developed or implemented in isolation. You need to engage your stakeholders, both internal and external, in the risk and crisis management process. This means communicating and consulting with them regularly, soliciting their feedback and input, and addressing their concerns and expectations. You also need to educate and train them on your risk and crisis policies, processes, and practices, and empower them to take ownership and responsibility for risk and crisis management. By involving your stakeholders, you can foster a culture of risk awareness and crisis readiness in your organization.

添加您的观点

加载更多内容

5 Review and update your plans

Your ERM and crisis management plans should not be static or rigid. They should be dynamic and flexible, able to adapt to changing circumstances and conditions. Therefore, you need to review and update your plans periodically, or whenever there is a significant change in your internal or external environment. You also need to test and evaluate your plans regularly, using scenarios, simulations, exercises, and audits, to identify and address any weaknesses or gaps. By reviewing and updating your plans, you can ensure that they remain relevant and effective for your organization.

添加您的观点

Dr. Nick Oberheiden

Attorney
举报内容
For companies that are struggling to manage ERM and crisis management within budgetary constraints, it can often be helpful to take a step back. If ERM and crisis management are currently too expensive, why are they too expensive? Is it because the company is taking too many risks? Or, is it because the company’s policies and procedures have grown unnecessarily burdensome over the years? Oftentimes, companies can reduce their ERM and crisis management spend by streamlining. Reviewing existing policies and procedures will often uncover both redundancies and gaps that are leading to unnecessary costs. Updating policies and procedures to address these issues can have both budgetary and risk management benefits.

已翻译

赞

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Risk Management

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can you align your organization's ERM and crisis management plans with its budget and resources?

1

2

3

4

5

6

1 Assess your current state

2 Align your plans with your objectives

3 Optimize your budget and resources

4 Engage your stakeholders

5 Review and update your plans

6 Here’s what else to consider

Risk Management

给文章评分

感谢您的反馈

更多Risk Management相关文章

更多相关阅读内容

How can you align your organization's ERM and crisis management plans with its budget and resources?

1

2

3

4

5

6

1 Assess your current state

2 Align your plans with your objectives

3 Optimize your budget and resources

4 Engage your stakeholders

5 Review and update your plans

6 Here’s what else to consider

Risk Management

给文章评分

感谢您的反馈

查看其他技能