Step 3: Establish a Management Risk Committee or Working Group

To provide strong backing for its ERM effort, an organization should consider creating a senior-level Risk Management Committee or Working Group as the vehicle through which the designated risk leader can implement the ERM initiative.

While the use of a committee or working group in addition to the risk leader can be viewed as optional, these committees have been used by risk leaders as an effective means to engage the right people across the organization to ensure success of their ERM efforts.

Ideally, such committees or working groups would include Head of Department as well as key business unit leaders to ensure that the organization’s ERM efforts are firmly embedded within the organization’s core business activities.

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