Uncertain Economic Times Require Effective ERM Education

By Doureen Wu, Director, Asia Risk Management Institute
23 June 2010

The Need for Effective Risk Management Training

Most organizations do not fully realize that they have reached a crucial tipping point moment where the traditional informal models of risk management are not good enough to face the challenges of today’s complex and uncertain world. Organizations need to develop a proper risk governance model that allows risk management to be fully integrated in both strategic and operational decisions processes proactively, systematically and across the organization. To do so and they need to increase risk management awareness and education within their organizations, not just to risk managers but to a much wider audience at every level, including top management.

What kind of knowledge and skills do Leaders and Managers need to manage risks successfully?

Leaders and managers at every level of an organization, not only need a thorough knowledge of their own subject, but also some specific skills required to implement and apply risk management in a very practical setting to support effective decision-making in their organizations.

For that purpose, they need to acquire:

  • An understanding of the concepts, principles and techniques of risk management as well as an understanding of the psychological, cultural, economic and business context.
  • An understanding of the nature and sources of risk (and opportunity) affecting organizations and how risks are addressed in the context of the general management, finance, HR, logistics, operations, IT, legal and governance issues, including the influence of external stakeholders.
  • The ability to analyze and interpret data. This extends beyond quantitative tools and techniques to include the importance of cultural context and how people make decisions.
  • The capacity to think critically about risks and to apply knowledge and critical thinking skills to solve organizational challenges.
  • The skills required to communicate risk-based information to support management decision-making and cooperate effectively with other people throughout the organization.

 

In summary, this involves not merely the acquisition of knowledge, but the ability to apply this knowledge critically to organizational risk management challenges so as to strengthen your organization resilience and support long-term performance.

Train your staff Now!

Most organizations do not fully realize that they have reached a crucial tipping point moment where the traditional informal models of risk management are not good enough to face the challenges of today’s complex and uncertain world.

Forward-looking organizations must develop a proper risk governance model that allows risk management to be fully integrated in both strategic and operational decision-making processes proactively, systematically and across the organization.

To do so, they need to increase risk management awareness and education within their organizations, not just to risk managers but to a much wider audience at every level, including top management. This is critical to ensure that organizations will have the leaders and managers equipped with the necessary knowledge and skills to support its long-term resilience and performance.

Our designations programs, ERM™, CPRM™ and CRA™ are your passport to ERM excellence and long-term competitive advantage for your organization!