Enterprise Risk management (ERM) plays an integral role in modern business operations not just across the organisation but also its extended networks. It allows organizations to identify, assess, and prepare for any risks that may interfere with their objectives and operational efficiency. One innovative approach to bolster ERM efforts is developing IRM-certified risk champions within the organization by putting them through the Global Level 1 Foundation ERM Training, Exam and Certification. Here are eight reasons why companies should consider this strategy:
- Expertise and Knowledge: By having certified risk champions, companies ensure that they have individuals with a deep understanding of risk management processes and principles. These professionals have the necessary training to identify, assess, and mitigate risks effectively, thereby enhancing the company’s ability to navigate potential obstacles.
- Fostering a Risk-Aware Culture: Risk champions can help foster a risk-aware culture within the organization. They can facilitate risk management training sessions, lead discussions about potential risks, and act as a constant reminder of the importance of risk management. This can lead to employees at all levels becoming more aware of and engaged with risk management.
- Enhanced Decision-Making: Risk champions can contribute significantly to strategic and operational decision-making processes. By offering insights into potential risks and mitigation strategies, they enable leadership to make informed, risk-adjusted decisions.
- Regulatory Compliance: Regulatory compliance is a crucial aspect of risk management. Risk champions, with their expert knowledge of risk-related regulations and standards, can ensure that the company adheres to all necessary compliance requirements, thereby reducing the risk of fines, sanctions, and reputational damage.
- Strengthening Stakeholder Confidence: Having certified risk champions can enhance stakeholder confidence, as it shows that the company is proactive and knowledgeable about risk management. This can be particularly reassuring for investors, clients, and partners who seek assurance that the company is capable of managing potential challenges.
- Improved Risk Communication: Risk champions can play a crucial role in improving risk communication within the organization. They can articulate complex risk scenarios in accessible terms and ensure that all team members understand the company’s risk profile and mitigation strategies. This fosters transparency and collective ownership of risk management.
- Crisis Management: During a crisis, a risk champion can provide much-needed guidance. They can help implement contingency plans, coordinate response efforts, and ensure that the company’s reaction effectively mitigates damage and facilitates recovery.
- Continuous Improvement: Risk champions can drive continuous improvement in the company’s risk management practices. They can initiate risk audits, identify areas for improvement, and lead efforts to implement changes. This ensures that the company’s risk management efforts remain effective and evolve with changing risk landscapes.
In conclusion, developing IRM-certified risk champions can be a game-changer for companies in their risk management journey. It is an investment in knowledge, culture, and capability that can significantly enhance a company’s resilience, agility, and overall competitiveness in a dynamic and uncertain business environment. Partner with us to develop risk champions, get access to a range of resources and thought leadership.