What Organizations Have Learned From Incorporating Ethics & Compliance Into Enterprise Risk Management (ERM)

February 11, 2011

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Incorporating the Ethics and Compliance (E&C) function can help transform ERM from a regulatory process into a strategic process
Assuring follow up and mitigation actions is essential for ERM to have credibility
Effective document management and protection is key for preventing ERM from creating additional risk for the organization
Using tools and processes that are already embedded in the organization when doing ERM helps to sustain the changes that are driven by ERM
The “risk appetite” of different organizations varies widely according to the culture
Leadership and culture can both reduce and exacerbate risk
The skills and competencies of the internal E&C function can reduce the organization’s reliance on external resources for conducting ERM, and reduce cost
Establishing accountability for mitigating the risks that are identified is essential for success
The E&C function can bring a coherent and integrated understanding of the overall risk profile of an organization
Formalizing ERM responsibilities in job descriptions and performance reviews helps to sustain the work overtime
The E&C function has strong capabilities to work effectively across departments and business units
ERM needs to respond to the organization’s culture, and it can also change that culture