When using enterprise risk management (ERM), you can involve everyone in the company, even the Board members.

The key is to lean on them to get the information that they use, that they own. And later, explain to them how the risks are connected and what their consequences are.

Youll start a risk culture within the company. One of the most important benefits is that people will change how they see what they are doing. And there will also be a common language of risks. It wont be only a matter of Internal Audit or Compliance; all employees will know what a risk map is, an emerging risk, risk appetite and risk tolerance.

And when using the ERM, the budget of different areas can also be linked to it. The higher the risk, the more resources needed to diminish it.

By learning how to manage risks, it will help the staff to anticipate, prevent and comply. And to have the companys own risk model, which can include a catalogue of all the risks the company faces. Just keep in mind: risks are dynamic. What today can be considered a high risk, tomorrow it can be a low risk. But now that the employees and Board members are involved in the risks, they can help you to evaluate them in different scenarios. Ive done it and its very fun!

Knowing how to manage the ERM will keep the company in control of the risks. And everyone will know what to do next year during the follow-up to the risk map.

Now, do you see it? You can use the risks to your advantage! In your hands is, to join us at the Advanced Enterprise Risk Management MasterClass.

Also, check out the upcoming masterclasses for the Finance Industry.

By Mónica Ramírez Chimal, International Speaker & Trainer, Writer, Consultant-Partner at Asserto RSC