FUTURE Operations Center Interest Group

I am adding this report to the library as it demonstrates that other adjacent disciplines (in this case Risk Management) are coming to the realization that silos hinder information sharing, resilience and outcomes. 

"THE PURPOSE OF ERM: ALIGNING RISK AND PERFORMANCE IN A COMPLEX AND EVOLVING RISK LANDSCAPE

The interconnected nature of the world means that crises and disruptive events often originate from complex, interrelated circumstances. Risks manifest unpredictably and can quickly cascade across operations, technology, and systems, leaving a tangible impact on performance goals. The traditional approach to risk management — focused on isolated domains and reactive measures — is no longer sufficient to address modern risks."

ERM is not a heat map of “top risks” compiled from interviews; that approach can produce a polished, academic book
report. And it is not a compliance exercise.

HOW DO ORGANIZATIONS APPROACH ERM

To address these challenges, organizations must adopt a holistic ERM approach that integrates organizational performance with resilience
capabilities/functions (e.g., operational risk, crisis management, business continuity, IT disaster recovery, cyber incident response, third-party risk management, and emergency management). This alignment creates a shared language and cadence for understanding risk across the organization.

It also reduces fatigue from repeatedly surveying leaders and staff for inputs that are already being collected. Ultimately, it can reduce the total cost of an organization’s resilience posture.

Supporting An Aligned Resilience Ecosystem
ERM enables the organization to ingest information from other risk domains and identify critical operational and strategic risks to performance goals while also aligning the risk and resilience domains, leading to reduced confusion among leadership and key stakeholders, elimination of redundant activities and organizational fatigue resulting from duplicative efforts, and re-aligned risk and resilience domains as one coherent ecosystem with aligned activities, functions, language, and cadence

Methodology: Continuous process to identify, assess, manage, and communicate risks to performance, with accountability for managing risk and addressing effectiveness.

Enterprise Risk Management is no longer a “check-the-box” exercise — it’s a strategic imperative for organizations seeking to thrive in a complex and uncertain world. By integrating risk leaders, aligning resilience functions, and leveraging the power of ERM, organizations can build preparedness, drive efficiency, and achieve cost savings.