Tim Kelly, Director of Corporate Risk at Country Financial discusses enterprise risk management (ERM).
Some highlights from the discussion:
Some highlights from the discussion:
1. What has been the biggest challenge in full implementation of ERM in your organization? What is the biggest obstacle moving forward?
The initial challenge was getting people to understand what ERM meant and what benefit it provides to the organization and to them personally. Once we understood this, our biggest challenge was understanding and determining our appetite for risk.
The biggest challenge going forward will be getting ERM ingrained into our management culture.
2. Who do you think is likely to play a leading role in the future of ERM? Regulators? Rating agencies? Competition?
All will play a role, but I believe competition will drive ERM more than regulators or rating agencies. As companies realize how making better decisions and how they can use ERM to their benefit, it will become much more common in the C-suite.
3. How has ERM changed communication within your organization? Has it changed the focus of that communication?
Terminology...Executives are beginning to talk more about the risks and rewards around decisions. The board is asking about our appetite for risk associated with board recommendations.
4. Who has been the internal champion for ERM? What avenues exist for communication to the board?
Our internal champion has been our CFO, Dave Magers. Dave got our senior management and board behind our ERM effort.