The most recent newsletter from the North Carolina State University College of Management’s ERM Initiative includes a couple of particularly interesting articles from the perspective of the linkage between strategy, performance and risk management.
Launching an ERM process can be a daunting task, especially in large, complex organizations. The importance of keeping the risk oversight process simple, but strategic, can be the key to realizing strategic value from ERM. Tony Heredia, Vice President of Corporate Risk and Responsibility at Target Corporation, shared insights from his experience in helping strengthen their organization’s integration of enterprise risk oversight and strategy. Creating opportunities for executive management dialogue about critical emerging risks is proving to be invaluable as the company navigates the highly competitive retail business in the new economy. Read about the Target experience
Panel of ERM Experts Discusses “The Value Proposition of ERM: Strategic or Compliance”
The ERM Initiative’s October 1, 2010 ERM Roundtable Summit featured a panel of executives responsible for ERM leadership at organizations including Advance Auto Parts, Standard & Poor’s, RTI International, and Public Service Enterprise Group that discussed the topic of positioning ERM for strategic versus compliance benefits. Among numerous practical suggestions was the overarching reality that, for ERM to be successful, leaders need to realize that there is no one-size-fits-all approach to ERM and that effective ERM is one that fully considers the culture of the organization and the importance of board and CEO support. Read more