Enterprise Risk Management

For Boards & Executive Teams

 Why Enterprise Risk Management (ERM) with Directors Global?

We use a proprietary process to guide our clients through the various steps in ERM. We are proud that a condensed version of our guide, entitled “Risk Oversight for Directors: A Practical Guide”, appears in the New York Times #1 Best Seller,  Chapter 31, “The Handbook of Board Governance”, Wiley Press 2020, Editor Dr. R. LeBlanc.

The basis behind sound risk management is to control material uncertainties in order to increase the likelihood of meeting and exceeding corporate objectives. To do this, the executive team must implement formal processes to manage key business risks potentially most impactful on objectives, while assessing, calculating and controlling key risks in big decisions and opportunities. In turn, boards must have formal practices in place to oversee the proper implementation of these risk processes at a high level.

We have implemented ERM Programs with some of Canada’s leading organizations (please see our Client/Testimonial page). Our approach is a customized one, based first on listening to challenges and opportunities, then understanding the current situation, stakeholders and risk context. There is no “right approach”- every corporate risk management program is entirely based on the unique needs of our clients. We usually start by providing participants with a base “guide”- a framework template we’ve developed entitled “Enterprise Risk For Executive Teams and Boards: A Practical Guide”. This guide, essentially a step-by-step manual, walks the executive team and/or board through the various steps at the core of a Best Practices ERM implementation.

We introduce recognized best practices in Enterprise Risk Management, aiming to equip boards with steps to fully actualize their risk oversight role, and to provide management teams with the many essential actions necessary to manage the risks.

Utilizing our aforementioned Guide and many other sources of guidance such as the CPA “Framework for Board Oversight of Enterprise Risks”, “ISO 31000:2018”, COSO and from years of instructing executives and directors at Canada’s top governance and directors institutes, our proven approach focuses on equipping the organization to eventually self manage risks. We focus on:

  • Five Elements: Education; Process; Governance; Oversight; Strategy.
  • Four Fundamentals: Adequate Resources;  Defined Leadership Roles; Risk Champions; Customization.

Each ERM implementation is  different. We typically advise that ERM be implemented over a three year period, following the development of a “Road Map” with milestones, developed based on numerous factors including identification of the corporation’s risk context, stakeholders and corporate objectives of the entity.

Value Proposition of ERM

  • Reduce Long Term Costs & Losses: Control potential future losses
  • Increase certainty in reaching organizational Objectives: ERM helps organizations reach their objectives by reducing uncertainty
  • Aligns Objectives & Risks: ERM aligns the key organizational strategies with the key risks, focus loss prevention on priorities
  • Governance Tool- Satisfying Stakeholders: Satisfies stakeholders, including regulatory and ownership mandates requiring formalized risk management and protection of assets and liabilities
  • Actualize Risk Oversight: ERM facilitates board risk oversight by following a structured, disciplined process managed, monitored and reported on by management
  • Follow Best Practices: Use of a globally recognized standard

Most boards and executive teams review, at least a...