How to form an ERM working group
15 October 2024
In the last blog, we introduced Ecclesiastical’s expert approach to Enterprise Risk Management – the latest thinking on how to anticipate, mitigate and even profit from the strategic risks which are faced by all organisations.
We shared our new ERM Toolkit summary, and explained how it would help guide you through this vital process, and in doing so how it could really benefit you.
An absolutely key part of any successful ERM system is, of course, its management and oversight.
Even the biggest and best organisations – battling with day-to-day working – can have difficulty setting aside adequate resources to deal with what may seem hazy and nebulous concerns about the future.
But if you’re reading this it’s because you know that this is not merely an optional extra, or a ‘nice-to-have’ – a positive and dynamic attitude to risk is crucial for success and growth, and it has to be something that your senior leadership champions, and promotes to every level.
So how do you embed ERM in your organisation?
Who do you put in charge?
What should their role(s) be?
And how do you stop it becoming a box-ticking exercise, and instead make sure it’s a ‘business as usual’ element of your overall culture?
Specific answers will vary from organisation to organisation, and sector to sector.
But one common factor is the assembly of a Risk Management Working Group – staff members who are empowered and required to think about Enterprise Risk Management, to design and communicate holistic strategies for dealing with those risks identified, and with the duty and responsibility to ensure the solutions identified are then implemented.
In our ERM Working group - Terms of Reference, you’ll find a helpful guide put together by our dedicated ERM team, which has huge experience and know-how in risk management.
It sets out a sample terms of reference for such a working group.
As above, your specific needs will vary, but we think this is a useful starting point and offers a good foundation upon which to construct a Working Group tailored to your requirements.
It’s crucial that you give dedicated people ownership of this project to reap the rewards.
Sarah Pearson, is Head of Enterprise Risk Management, at Ecclesiastical