Step 1: Seek Board of Directors (BOD) and Senior Management leadership, Involvement and Oversight
The BOD and senior management set the tone for the organization’s risk culture. Their involvement, leadership and oversight are essential for the success of any ERM effort. The BOD and senior management should agree on their initial objectives regarding ERM, its benefits and their expectations for successful ERM.
At a high level, there should be clear agreement and alignment of the BOD’s and senior management’s expectations, timing and expected results. This should include agreement on the resources to be made available and targets dates for the effort. The BOD should also consider the timing and level of status reporting that will be required to effectively monitor and oversee the ERM effort.