Is your business continuity solution ready to help in a disaster?
Robust Enterprise Risk Management is required for all organizations as we emerge from the past recession. If you remove the word “enterprise” you are left with risk management which has been established earlier as something each organization must do to remain safe, sound, and compliant. Risk management costs are largely unmeasured and believed to be increasing significantly, and the cause is leveled at new regulatory requirements. But new threats emerge daily and the organization’s response is typically added to current risk mitigation activities. New products and services are being introduced at an accelerated pace. The risk posture of an organization is in constant change. If the organization had the ability to measure the cost of risk management you should be able to make it cost less.
The sample slide shown below represents an approach to measure the cost of ERM. In reviewing the information in the format below, executive leadership can make quick assessments on where to shift existing resources from low risk to higher risk activities, where to invest additional resources, and where to stop. Balancing the cost of assessing and managing risk is important to ensure that you are protecting and securing the franchise from threats – both known and unknown.