CRO DIARY - Episode 6 - Understanding and Implementing Enterprise Risk Management

Watch some of the best ideas in risk and decision making at the Risk Management Awareness week, streaming now at https://2021.riskawarenessweek.com Watch some of the best ideas in risk and decision making at the Risk Management Awareness week, streaming now at https://2021.riskawarenessweek.com Alex Sidorenko sharing risk management stories, answering questions and telling the valuable lessons he learned as a CRO. In this session Alex talks about new COSO document called Creating and Protecting Value: Understanding and Implementing Enterprise Risk Management. This paper offers succinct, tangible steps to implement an effective ERM program based on successful practices used by organizations in taking an incremental, step-by-step approach to implementing ERM. Co-authored by co-authored by DePaul University’s Richard J. Anderson, Clinical Professor of Strategic Risk Management, and Dr. Mark L. Frigo, Co-founder and Director Emeritus of the Strategy, Execution and Valuation Initiative & Strategic Risk Management Lab at the Kellstadt Graduate School of Business/Driehaus College of Business - School of Accountancy & MIS. Translated titles: DIARIO CRO-Episodio 6-Comprender e implementar la gestión de riesgos empresariales CRO DIARY-Episode 6-Unternehmensrisikomanagement verstehen und implementieren CRO DIARY-Épisode 6-Comprendre et mettre en œuvre la gestion des risques d'entreprise CRO DIARY-Episódio 6-Compreendendo e implementando o gerenciamento de riscos corporativos सीआरओ डायरी-एपिसोड 6-एंटरप्राइज रिस्क يوميات CRO-الحلقة 6-فهم وتنفيذ إدارة مخاطر المؤسسة CRO日记-第6集-了解和实施企业风险管理 The key idea of the video is that implementing enterprise risk management is crucial for organizations to improve sales, cultural understanding, and achieve immediate results by integrating risk management into operations and proving its value through pilots. 00:00 📝 Implementing enterprise risk management requires management and board support, understanding the purpose and value creation, and transitioning from binary to probabilistic decision-making, with the speaker criticizing the authors for lacking practical applications. 12:04 📊 Implementing Enterprise Risk Management is crucial for organizations to improve sales, cultural understanding, and achieve immediate results, by integrating risk management into operations, utilizing existing resources, and proving its value through pilots. 21:14 📊 Understanding and implementing enterprise risk management involves integrating it into existing committees, appointing a chief risk officer, and conducting risk assessments to achieve strategic objectives and protect the business, but it may not provide immediate value. 29:51 💼 Risk managers should have the necessary qualifications, and individual managers, not board members, are the primary users of risk management, with strategic risk assessment being integrated into various processes rather than treated separately. 33:21 📊 Implementing Enterprise Risk Management (ERM) is more effective than developing separate action plans for risks, and it should be integrated into existing policies and procedures, including risk analysis, purchasing management, and communication training. 40:44 📚 Integrating risk management into annual planning, budgeting, and strategy development is crucial for a risk manager's career transition, but practical business operations and understanding risk appetite should not be overlooked; watch the free session "Making Uncertainty Live" for valuable knowledge on enterprise risk management. 45:17 📊 Understanding and implementing enterprise risk management involves expanding risk assessment processes and utilizing new technologies to enhance decision-making, but the usefulness of outdated documents is questioned. 51:11 👍 We apologize for technical issues and look forward to your comments. 💼 "Getting buy-in from individual directors is much more practical than getting board support when implementing enterprise risk management in a company." 💡 The value of moving from binary decisions to probabilistic decisions in risk management is a powerful tool for decision-making. 💡 There are more practical and realistic applications of risk management that can immediately benefit a company, rather than starting with a comprehensive strategic risk assessment. 💡 Financial departments worldwide use advanced scenarios and less error-prone methodologies for risk assessment, indicating the potential for improvement in risk analysis practices. 🤔 "Risk management is not a separate independent activity, but should be integrated into the strategic planning process." 🤔 The main users of risk management in an organization are individual managers, including CEOs, rather than board members or committees. 📚 Identifying individuals within an organization who are "risk management ready" and implementing continuous communication and training are crucial components of successful risk management implementation.