I have been talking (and writing) for a long time about the sad reality that leaders of organizations around the world see risk management as something they have to do rather than want to do.
Surveys say that:
- Around 80% see risk management as a compliance activity.
- According to Deloitte, only 13% see it as making a significant difference in setting the right strategies and objectives and then executing against them.
- Only a very small number of board members and executives are willing to dedicate the time and resources necessary to bring risk management up to what people (such as the ERM Initiative at North Carolina State University) believe is fully mature. Just 3% told the ERM Initiative that their risk management program is “robust” – and the level of effectiveness is decreasing over time, not improving.
- 3% told the ERM Initiative that risk management has “strategic value”.
How do we turn that around?
How can we make risk management into something that leaders want to do?
How can we help them see it as something that helps them succeed: what I call success management?
We need them to see it as something that helps them lead the organization to success: the achievement of objectives.
It needs to help them individually as well as the organization as a whole.
If they don’t see it as…
