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Enterprise Risk management is Not a Standalone

Enterprise Risk management is Not a Standalone

Guest Post by James Kline (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Enterprise Risk management is Not a Standalone

When Enterprise Risk Management (ERM) is advocated, it often seems like it is the end all and be all.  However, this is not true.  It is a methodology which assists management in identifying the risk that can prevent an organization from accomplishing it desired goals.  As such, it should be viewed as another management tool in a range of tools.  Perhaps the best presentation of this idea, for local government, is from the city of Oshawa Canada.  This piece discusses how it has integrated ERM into it continuous improvement process. [Read more…]

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ISO 31000 as an Enterprise Risk Management Standard

ISO 31000 as an Enterprise Risk Management Standard

ISO 31000 is 23 pages long, but these pages provide an entry level Enterprise Risk Management (ERM) guideline.

Why is this important?

An organization develops ISO 31000 ERM capabilities to provide a structured, consistent, disciplined, and achievable approach to risk management that facilitates Risk Based Thinking throughout the organization. Risk Based Thinking is composed of 1. Risk based, problem solving (RB – PS) and 2. Risk based, decision making (RB –DM). Both RB – PS and RB – DM are the basis for all management and supervision. We discuss this in our new book: ISO 31000: Enterprise Risk Management.

Interestingly, we wrote a 230 page book packed with loads of information for a 23 page standard.   And oh by the way, we could have written another 200 pages. [Read more…]

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ISO 31000 Challenges

ISO 31000 Challenges

ISO 31000 is going to be used more often as more ISO certified companies adopt Risk Based Thinking.  However, ISO 31000 can be challenging.  Why?

Interestingly, the descriptive nature of the ISO 31000 standard may well be its strength, but may also be its weakness.  The standard without the proper guidance of a risk practitioner maybe come discretionary and even arbitrary.

ISO 9001:2015 has Risk Based Thinking requirements.  Note ISO 31000 was developed in 2009 and is not harmonized with the new annex SL standards and ISO 9001:2015. [Read more…]

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US Government ERM Requirement Finalized

US Government ERM Requirement Finalized

Guest Post by Greg Hutchins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

We’ve been discussing how ISO 9001:2015 has adopted Risk Based Thinking that will impact 1.2 million companies.  ISO 14001:2015 will impact 400,000 companies.  Now, government agencies are adopting and putting into statute risk management.

We’ve been talking up the fact the US government is requiring Enterprise Risk Management (ERM), specifically Office of Management and Budget Circular OMB A 123, of all US departments.  This is a game changer for federal agencies.  In this article, we’ll look at some of the significant changes in ERM for Federal agencies. [Read more…]