Key to ISO 31000 Success – Theme 1: Support from the Top is a Necessity
To successfully manage risk, an ERM initiative must be enterprise wide and viewed as an important and strategic effort. Support from the company board is needed to get the right focus, resources and attention for ERM.
Although it is not the job of the company’s board to manage the ERM activities, they do need to demonstrate clear support for the ERM initiative as well as oversee what senior management has designed and implemented to manage top risk exposures. Thus, ERM must be enterprise wide, and understood and embraced by its personnel, and driven from the top down through clear and consistent communication and messaging from the company’s board to senior management and to the whole organization as a whole.
It is the responsibility of company’s board to set the right tone for ERM, and ensure that management is devoting the right attention and resources to ERM.
What’s more, the company board needs to put in place an effective ERM leader who is widely respected across the organization and who has accepted responsibility for overall ERM leadership, resources and support to accomplish the effort.