Risk management can be an ambiguous term subject to multiple perceptions and
interpretations. The terms enterprise, strategic, and operational are some of the
qualifiers we use to provide clarity and meaning to risk management yet the
opposite is often the result. But let’s not get hung up on terminology. We can
view enterprise risk management as an umbrella term underneath which we
place strategic and operational risk management.
Perhaps more importantly we need to recognize the similarities between risk
management and performance management and view them as key drivers for
decision making. Dynamic decision making is enhanced by recognizing the
performance requirements for matching risk management with operational
business needs. All management decisions have risks. Said differently, all
management is risk management. The goals and objectives are the same as are
the metrics used to measure performance.
Regardless of the labels we use, it’s what lies behind the curtain that is important
and that is where we must go to find the keys to process improvement and
success. Those keys are the drivers, and the first step in optimizing operational
performance is to identify the KPIs / KRIs that give us what we need to know to
make the best decisions and take the best action in meeting our strategic
objectives. That which gets measured gets managed … and that which gets
managed best builds and grows competitive advantage. Quality decisions drive
success.
In today’s business world the window of opportunity for making the best decisions
and taking the best action has shrunk and the volume and complexity of data
used to make those decisions has expanded exponentially. What is your data
telling you? And how long does it take to get the answers you need in the form,
context, and dimensions you need? It is impossible to get these answers without
the intelligent use of technology.
Improved decision making is dependent upon improved information - information,
in most cases, that you already have. You just need the right tools to collect,
analyze, and transform that relevant data into actionable intelligence and present
it to you in a consistent reliable way. Business intelligence analytics allow
decision makers to use risk/performance metrics proactively - to look upstream at
key risk and performance indicators - and give them the tools to trend and
forecast. This is what we mean by intelligent risk management.
And this is what we mean when we say risk management and performance
management are flip sides of the same coin. John Hagerty, AMR Research,
writes:
Risk management and performance management are eerily
similar. AMR Research believes these will eventually fuse
into one governance system to strategically guide an organization
to its next level of business performance.
be easy to use and architected to promote intuitive, interactive use at both the
strategic and operational levels. Decision makers must have the tools to sift
through and analyze data and have that data presented to them in the form and
context that promotes proactive decision making.
ERMcs has partnered with solution providers that offer software and services
aimed at performance optimization and process improvement. Our goal
is to give you the resources to build and sustain a decision management system
enabling you to transform risk and operational performance information into
actionable insight. ERMcs helps you select the best technology to meet your
needs by helping you realize the tremendous value your data offers when it is
presented and visualized as business analytics. Business analytics, as key
performance indicators, allow you to make the right decisions at the right time.
Is the time right for you to maximize the value of your data and improve your
approach to risk/performance management? Is the time right for you to integrate
risk, performance, and decision management throughout the enterprise?
ERMcs can help. Go to our services & solutions page to find out how.
Joe Knepper joe@ermconsultingservices.com 717-669-4583
interpretations. The terms enterprise, strategic, and operational are some of the
qualifiers we use to provide clarity and meaning to risk management yet the
opposite is often the result. But let’s not get hung up on terminology. We can
view enterprise risk management as an umbrella term underneath which we
place strategic and operational risk management.
Perhaps more importantly we need to recognize the similarities between risk
management and performance management and view them as key drivers for
decision making. Dynamic decision making is enhanced by recognizing the
performance requirements for matching risk management with operational
business needs. All management decisions have risks. Said differently, all
management is risk management. The goals and objectives are the same as are
the metrics used to measure performance.
Regardless of the labels we use, it’s what lies behind the curtain that is important
and that is where we must go to find the keys to process improvement and
success. Those keys are the drivers, and the first step in optimizing operational
performance is to identify the KPIs / KRIs that give us what we need to know to
make the best decisions and take the best action in meeting our strategic
objectives. That which gets measured gets managed … and that which gets
managed best builds and grows competitive advantage. Quality decisions drive
success.
In today’s business world the window of opportunity for making the best decisions
and taking the best action has shrunk and the volume and complexity of data
used to make those decisions has expanded exponentially. What is your data
telling you? And how long does it take to get the answers you need in the form,
context, and dimensions you need? It is impossible to get these answers without
the intelligent use of technology.
Improved decision making is dependent upon improved information - information,
in most cases, that you already have. You just need the right tools to collect,
analyze, and transform that relevant data into actionable intelligence and present
it to you in a consistent reliable way. Business intelligence analytics allow
decision makers to use risk/performance metrics proactively - to look upstream at
key risk and performance indicators - and give them the tools to trend and
forecast. This is what we mean by intelligent risk management.
And this is what we mean when we say risk management and performance
management are flip sides of the same coin. John Hagerty, AMR Research,
writes:
Risk management and performance management are eerily
similar. AMR Research believes these will eventually fuse
into one governance system to strategically guide an organization
to its next level of business performance.
be easy to use and architected to promote intuitive, interactive use at both the
strategic and operational levels. Decision makers must have the tools to sift
through and analyze data and have that data presented to them in the form and
context that promotes proactive decision making.
ERMcs has partnered with solution providers that offer software and services
aimed at performance optimization and process improvement. Our goal
is to give you the resources to build and sustain a decision management system
enabling you to transform risk and operational performance information into
actionable insight. ERMcs helps you select the best technology to meet your
needs by helping you realize the tremendous value your data offers when it is
presented and visualized as business analytics. Business analytics, as key
performance indicators, allow you to make the right decisions at the right time.
Is the time right for you to maximize the value of your data and improve your
approach to risk/performance management? Is the time right for you to integrate
risk, performance, and decision management throughout the enterprise?
ERMcs can help. Go to our services & solutions page to find out how.
Joe Knepper joe@ermconsultingservices.com 717-669-4583
| Quality . Performance . Value |
| Enterprise Risk Management consulting services |
 |  |  |  |  |
| A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be. - Wayne Gretzky |
Enterprise
| Decision Management |
Performance
Management
Management
Risk
Management
Management
| analytics driven by |
|
ERMcs offers value-added consulting and systems integration services with a focus on business process optimization and strategic objectives driven by business intelligence analytics. Our efforts are guided by the firm belief that continuous improvement can be achieved through an integrated approach to risk and performance management throughout the enterprise - an enterprise where technology and business processes are fully integrated. |
"Prevent loss and promote value" - that's the goal, whether you're talking about risk management or performance management. Analytical performance tools empower you to work pro-actively, looking forward to predict and prevent problems or “at-risk” conditions, activities, and behaviors. These same business analytic tools allow you to promote, maximize, or optimize opportunities for growth and increased productivity. In this sense performance management and risk management are the same thing, or at least flip sides of the same coin. The key indicators, KPIs and KRIs, are based on similar metrics. We speak in terms of leading and lagging indicators. Leading indicators, as key performance drivers (KPDs), are based on predicitive analytics which enable us to trend and forecast probabilities and gain actionable insight. Enterprise Risk Management (ERM) is all about balancing risk and reward in the face of uncertainty. This requires a focus on leading indicators based on real time and forward trending data. In the end, ERM must be perceived as management's way of doing business successfully. That’s your true measure of performance. |