Sharing Practice on Enterprise Risk Management

Managing risk is something that we used to do in life and that also happen in corporation (generally we used enterprise term instead of corporate ). IT’S NOT SOMETHING NEW.

The term ERM is used to make it more systematic refer to how we manage risk that could make our objective unachievable. The way we manage risk must consider all knowledge available such as  managerial finance, human capital, strategic management, and legal.

The point is when you want to implement enterprise risk management (ERM) you should

  1. GET THE RIGHT START by building strong risk governance as the foundation
  2. CHOOSE THE MOST SUITABLE RISK FRAMEWORK according to corporate’s characteristic and used it as guideline
  3. MAKE  RISK MANAGEMENT EMBEDDED IN CORPORATE CULTURE by making it integrated with corporate’s and employee’s Key Performance Indicator (KPI)

[slideshare id=1700089&doc=sharingpracticesonerm-090709052938-phpapp01]

<div style=”width:425px;text-align:left” id=”__ss_1700089″><a style=”font:14px Helvetica,Arial,Sans-serif;display:block;margin:12px 0 3px 0;text-decoration:underline;” href=”” title=”Sharing Practice on Enterprise Risk Management (ERM)”>Sharing Practice on Enterprise Risk Management (ERM)</a><object style=”margin:0px” width=”425″ height=”355″><param name=”movie” value=”” /><param name=”allowFullScreen” value=”true”/><param name=”allowScriptAccess” value=”always”/><embed src=”” type=”application/x-shockwave-flash” allowscriptaccess=”always” allowfullscreen=”true” width=”425″ height=”355″></embed></object><div style=”font-size:11px;font-family:tahoma,arial;height:26px;padding-top:2px;”>View more <a style=”text-decoration:underline;” href=””>presentations</a> from <a style=”text-decoration:underline;” href=””>Diane  Christina</a>.</div></div>

A New Horizon in Managing Risks

What is the mean of Risk Management Standard to your organization?

In the rising concern of Risk Management today, we have numbers of Risk Management implementation frameworks established by various nationwide bodies. Without one worldwide consensus on standard of Risk Management Implementation, the situation may lead us to various challenging and debating perspectives in deciding the most proper Risk Management implementation standard for our organization. Besides that, International Standard can also help an organization to comply with legal and regulatory requirements and international norms as well. Risk Management standard indeed contribute to the bottom line of organization but Risk Management standard provide only general description of the elements, processes, and activities required for risk management.

ISO 31000 provides a high level concept of Risk Management implementation that should not be in conflict with the existing and specific frameworks or methods of Risk Management implementation. Existing frameworks or methods may be different particularly in that they may not have as broad a perspective as ISO 31000. The most important thing highlighted in ISO 31000 is corporate culture since risk management cannot be implemented as a template; it goes along with the company’s specific needs and circumstances among others: the industry where they do business, complexity, size, strategy, and governance of the company.

In that ISO 31000 Seminar held by APB Group-Indonesia on August 6th, all of us were encouraged to have a new horizon in managing risks, means that Standard is a good guidance in implementing risk management and standard contribute in increasing visibility of the balance between opportunities and risk but standard itself is not a one-size-fits-all solution.


ISO 31000 Risk Management Standard, Jakarta, 06 August 2008

ISO 31000 Risk Management Standard, Jakarta, 06 August 2008