ACEC/MN Risk Management Committee - Enterprise Risk Management (1/18)
Date and Time
Thursday Jan 18, 2024
12:00 PM - 1:30 PM CST
ACEC/MN Risk Management Committee - E...
Description
Greetings ACEC/MN members,
As ACEC/MN gets settled into our new St. Paul Office, we are hard at work to revamp and reinvigorate many of our key committees and events. The Risk Management Committee has been at the top of our lists and we are pleased to invite you to mark your calendars for its return on January 18th, 2024, 12-1:30PM.
At our January meeting, Committee Chair Brian Kampf, Kraus-Anderson Insurance will lead a discussion panel on Enterprise Risk Management (ERM). ERM is a Strategic Approach that helps organizations identify those risks that could impact their objectives and overall performance, and in worst case scenarios, could put them out of business. It involves a systematic process of identifying potential risks, analyzing their potential impact, and implementing strategies to manage and mitigate those risks.
- All members of the Risk Management Committee will receive a calendar invite for this meeting, please be sure to RSVP to help us plan ahead.
- Please feel free to register for this meeting here and we will add all those registered to the calendar invite.
- If you would like to be added to the committee list please reach out to john@acecmn.org.
Most businesses are really good at doing what’s right in front of them, or in their immediate horizon. The day to day, what one could call, “basic blocking and tackling.” But what happens when something comes up that is not in their immediate horizon, something they don’t deal with every day, something they don't know much about?
A few examples might include:
- Maintaining operations in a pandemic
- Supply chain disruption
- Restriction of money supply (increase in nominal interest rate)
- Major regulatory reform,
- New product/service introduction from a competitor
- Artificial intelligence
- Third party liability
- Quantum computing
- Cyber-attacks
For businesses based in America, implementing ERM can provide several benefits:
- Improved decision-making: ERM helps businesses make informed decisions by identifying and assessing potential risks. This enables management to consider risks while formulating strategies, allocating resources, and setting objectives.
- Enhanced risk awareness: ERM promotes a risk-aware culture within the organization. It encourages employees at all levels to identify and report risks, fostering a proactive approach to risk management.
- Increased operational efficiency: By identifying and addressing risks, ERM helps businesses streamline their operations and reduce potential disruptions. This can lead to improved efficiency, cost savings, and better resource allocation.
- Regulatory compliance: ERM assists businesses in complying with various regulatory requirements. It helps identify potential compliance risks and ensures appropriate measures are in place to meet legal and regulatory obligations.
- Competitive advantage: Effective risk management can provide a competitive edge to businesses. By proactively managing risks, organizations can build trust with stakeholders, enhance their reputation, and differentiate themselves from competitors.
Question: Why does a car need brakes? Answer: A car needs brakes so it can go fast.
Without brakes a car could only tool around at 2 mph and would stop only when the environment allowed for it.
Most large, sophisticated organizations in general industries have embraced the concept of ERM as a form of corporate risk management and governance. Smaller, privately owned organizations may find this a bit harder to embrace for a host of reasons. They don’t have the internal resources, experience or personnel that can be committed to this type of ‘global’ risk assessment of their organization, making the effort appear monumental in terms of effort and scale. The good news is that smaller organizations don’t have to commit to the entire ERM concept, but with a baseline understanding of what it is, they can commit the resources to those risk issues that carry a higher probability of affecting their firms and then create a process to respond and survive those risks.
Please join us for this informative and exciting conversation January 18th, 12-1:30PM at ACEC/MN's St. Paul Office, located at 30 East 7th Street, St. Paul, MN 55101. This meeting will be held in the First Floor Training Center Board Room.
If you have suggestions for topics or speakers for future Risk Management Committee meetings, please feel free to reach out by email to john@acecmn.org, or bring your great ideas to our January 18th meeting.
Thank you members, hope to see you there.