What is SRM / Strategic Risk Management?
Strategic risk management (SRM) is best described as the process of identifying, assessing, and managing any risk that affects organization's strategy, strategic objectives, and strategy execution. Does your organization have a such process? If you answered yes!, great. Your organization is ahead of many by having a strategic risk management. That’s great! Because that means you have overcome the challenges I talk about in my 5-part video series on Linking ERM to Strategy.
The best and simplest way to describe the strategic risk management process is to say that it requires managing key input variables (internal and external environments) and key output factors (mission, objectives, strategy, and policies).
These factors influence how strategy formulation, implementation, and evaluation and control are related, and how a change in any one factor (e.g., corporate objectives) affects other factors (e.g., strategies, policies, programs, budgets, procedures, evaluation and control techniques).
If you have a good strategic risk management processes, are you wondering how the strategic plan can be integrated with organization's operational risk management (ORM)? Linking SRM with ORM can create significant difference in your organization's ability to achieve its strategic objectives. Incorporating the insights from the strategic risk management activities through the process of risk identification, and addressing them as part of the business plans will ensure your success.
SRM also delves into ORM by promoting activities that reduce some of the identified strategic risks. Those activities will hopefully become a part of their regular operations and processes. We help organizations in creating SRM Action Plan that not only integrates with their ORM but also results in effective control mechanism to sustain future gains.
If your ERM program is stuck in neutral and needs a boost to get moving again, contact me to discuss how you can get a tailored action plan to achieve your ERM goals.
Do you want to help ensure your organization achieves its strategic objectives but are unsure how to proceed? Are you struggling to get your risk management initiative off the ground or back on track? Contact me to discuss your program today for more insights into ERM.