To circumvent risk, company leadership must understand the potential impact and wider implications of risk. By engaging with risk managers, leadership can institute an enterprise risk management culture with best practices such as risk assessments.
Simplify this process through a structured and organized tool for implementing a risk assessment framework with a bottom-up, five-factor approach.
Common Approaches for Executing ERM
To effectively translate risk assessment activities in a way that the C-suite will understand, a risk assessment method must be used to demonstrate risk issues. The most robust way to create a risk dialogue is a bottom-up approach combined with a five-factor assessment of each of your company’s risk assessment building blocks.
Armed with such an assessment that can inform and educate your business leaders, you can:
Strengthen risk mitigation methods
Evaluate individuals, teams and departments for risk mitigation
Recognize gaps in controls
Focus resources on areas for improvement
The Necessity of Communication
Communication is key with risk assessments. A powerful way a risk manager can communicate value to leadership is by transforming actions into financial terms that the C-suite and board can use to inform strategic decisions.
This communication should include a common “risk language.” A risk manager must find ways to put issues in terms that the C-suite and board find relatable. By adopting this approach, the organization can take larger strides in developing a more unified and integrated approach to managing risk.
The Importance of Collaboration
While risk managers implement risk assessments and provide help and support, it is up to the department heads to ensure that the appropriate systems are in place for effective vertical and horizontal risk collaboration. Leadership’s engagement in risk management helps drive enterprise understanding of risk across the organization by encouraging stakeholders to incorporate managing risk into their role.
In that way, risk owners will feel accountable for the self-identification of and ownership of the risks in their individual units. Business leaders can’t rely on the risk manager alone to identify enterprise-wide risks.
The fact is, a risk management culture must be built from the top down as well as the bottom up. Without an across-the-board functionality, a company’s handling of risk will never be optimized.
Procipient®— A Structured Risk Assessment Tool
Procipient® delivers a structured and organized tool for implementing a risk assessment framework with a bottom- up approach. The GRC-ERM software platform works from the bottom all the way up to the top of your business with a five-factor approach to assessment, compliance and audits.
If a risk manager is asking the wrong questions simply because the organization required all parties involved to use the same questionnaire and go through the same methodology regardless of circumstance, Procipient® has a solution. By using building blocks as the foundation of your assessment tool, Procipient® sets the methodology to only assess what needs assessing.
With pre-built frameworks that serve as a starting point for your business, Procipient® collects your information and gives you insights for improving your risk assessment processes overall.
Partner with Procipient®
No other ERM/GRC software is as advanced or experienced as Procipient®. You can be sure that when you partner with us, you are gaining a team of experts.
With more than 20 years of industry experience, we can help your business identify areas for improvement and provide a seamless workflow platform for risk managers and leadership to communicate and collaborate. Request a demo to see how Procipient® can help organizations execute risk assessments more quickly and efficiently by helping risk managers explain to leadership where to focus risk mitigation efforts.
Contact Us: 1-833-ERM-EASY | email@example.com | 9987 Carver Rd, Suite 130 Blue Ash, OH 45242