Meaningful Metrics: Using ERM to Inform Strategy
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Presenter: LogicManager CEO, Steven Minsky. Mr. Minsky is a recognized speaker and a certified instructor on the subject of ERM.
Duration: 50 Minutes
Risk managers have a lot on their plates. From collecting and presenting important data, to engaging employees throughout their organization, it’s hard to bring all these activities together. Gaining organizational support is crucial for the success of any ERM program, but communicating value and opportunities is a challenge many risk managers face.
Risk management metrics are tools companies can utilize to achieve their strategic goals and move their business in the right direction. Best practice metrics are a way to monitor the risks a company faces, while ensuring strategic objectives are achieved. The right metrics also provide an effective way to motivate and engage employees at all levels, so where should you start?
- Distinguish crucial business metrics, including KRIs vs. KPIs and leading indicators vs. lagging indicators.
- Use two best-practice steps (the performance of risk assessments and the design of monitoring activities) to identify other useful metrics at your organization.
- Contextualize metrics with risk tolerance statements from across the enterprise, then design your board reports using this cross-functional information.
We’ll look at actionable metrics that governance professionals can utilize to improve efficiencies, identify opportunities, and prevent risk events from occurring. We’ll present examples of effective risk metrics and explain a risk manager’s role in helping employees throughout their organization establish, measure, and report trends over time. We’ll also use case studies to examine failures in risk management, provide examples of actionable metrics that can protect your organization, and share best practices for tying metrics to strategic objectives.
Other Topics Covered:
- Differences between robust and isolated metrics
- Relationships between metrics and strategic objectives
- Case studies on risk management failures