Global

Details

  • Date: 1/2/2014

Conclusion 

The key lesson from the survey for ENR companies is integration. If risk management is regarded by leaders of the business as a pro forma exercise solely for the consumption of Board members, it will remain forever divorced from operational reality. The CEO must take the lead in helping the Board make risk-aware decisions at an enterprise level, while ensuring that managers lower down the hierarchy understand how their choices affect the risk profile of the company. ENR companies often do a good job managing risks to health and safety and the environment, but these challenges tend to overshadow other risks that may be equally dangerous to the health of the company. Only by integrating the process of risk management into everyday business thinking can executives build a risk-aware culture.

 

 

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