risk_taxonomy2.jpg?width=322Fifteen of the world’s top risk managers met recently at the 2013 RIMS Risk Summit. When the topic of reputational risk arose, the group struggled to develop a concrete value proposition, but unanimously agreed that no ERM assessment that failed to tackle reputation risk would be deemed complete by leadership.

Their recognition calls attention to one of the biggest hurdles confronted by risk managers in all industries when faced with high level risks deemed critical by the board or executive leadership. How does a risk manager take a strategic goal, such as reputation enhancement, being the “provider of choice,” or exhibiting responsible citizenship, and pin it down to measureable and actionable initiatives?

The key is installing a risk taxonomy that is dynamic enough to map the front line risks faced everyday with the strategic priorities of leadership.

Let’s take, for example, the recent trend of Fortune 500 companies across the globe to integrate Corporate Social Responsibility (CSR) as a core business competency. Initiated by leadership, the ultimate ability for organizations to demonstrate good citizenship falls to front line managers across the enterprise. As a risk manager, how valuable would it be to drill down into your risk library, identify the risks associated with CSR, and then aggregate and report on the risks to that strategic goal?

This is just one example of how establishing an ERM Process can turn abstract goals into measurable achievements. The same concept can be applied to reputational risk, financial objectives, safety concerns, and countless other management level objectives. With the right tools, Risk Managers are able align their activities with their organization's unique risk appetite, allowing them more time to identify gaps that put their company in jeopardy.

Interested? Request a free demo where we’ll demonstrate the benefits of our ERM framework with your existing data. For more information on the RIMS Risk Management Society, we invite you to take the RIMS Risk Maturity Model to evaluate your organization.


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Steven Minsky, CEO and Founder of LogicManager, is a recognized thought leader in risk management. Steven is well known for his precinct abilities to guide organizations through future risk events. Steven is a frequent speaker in the Energy, Financial Services and Cyber industries. While the first wave of COVID-19 caught many organizations by surprise, Steven predicted the pandemic impacts in January of 2020 and swiftly published action plans to help organizations prepare.

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