In much the same way, line of business managers generally can see certain
risks most clearly. That’s why managing risk is everyone’sbusiness: The com-
posite of all those unique perspectives creates the most complete picture of
the risks that the company faces and helps pinpoint the most strategic risks
to consider.
To get even more specific about what moving risk into the culture really means,
Table 2-1 lists various roles and responsibilities to consider for helping them
integrate risk.
Table 2-1 Moving Risk into the Culture, Role by Role
Executives Executives should view risk management as a critical part of
performance management. Risk should be considered when
deciding which corporate strategies to pursue (such as merg-
ers and acquisitions, new product development, and the like).
Once the strategy is set, executives need to review the top risks
and monitor the key risk indicators for meeting each of the com-
pany objectives.
Based on the new transparency of risks across the enterprise,
create risk-adjusted proformas for what-if analyses and
scenario testing.
Benefit: Executives gain transparency across all enterprise
risks that can help them be proactive, because they can view
the most up-to-date risk data in dashboards, reports and alerts.Risk managers Risk managers are able to leverage all the data currently in their
enterprise systems so the risks can be automatically identified
and monitored.
The professional risk management team needs a single platform
to automate risk management processes across the disparate
systems within their enterprise. They need an open framework
to integrate other systems to provide an end-to-end risk
process across the extended enterprise of customers, suppli-
ers, and partners. This also includes manual processes. Rather
than trying to fight collaboration done manually using the
phone, email, and spreadsheets, the risk management
processes should incorporate these tools automatically into
risk management processes.
Benefit: By taking this approach, risk managers will be able to
focus on collecting and analyzing important risk information,
and become strategic advisors to the business units.
(continued)