There are thousands of PwC employees around the world. There have to be some that understand how the effective management of risk helps boards and management teams achieve enterprise objectives through informed and intelligent decisions. It enables people to take the right level of the right risks for success.
But their Director’s Guide to ERM Fundamentals is a disappointment.
Take the first sentence of the web page:
ERM programs are intended to formalize how risks are identified, assessed, managed, monitored and reported on in light of strategic priorities.
That is NOT effective risk management.
You need to manage the business not risks.
You need to take the right risks as part of informed and intelligent decision-making, both strategic and tactical.
I have to say that PwC is at least consistent. I asked the same question, does PwC understand risk management, in 2015. My answer then was that they did not. I’m afraid they haven’t changed my view with this latest misguidance for directors.
They got it right when they said:
Having an effective ERM program can help the board and management make more informed decisions in the face of uncertainty.
But there is little more to commend after that.
They define the highest level of ERM Maturity as:
Systems, processes and culture are integrated with key…
