IERP® Monthly Newsletter Issue 30 December 2021 | Page 28

27 The IERP® Monthly Newsletter December 2021

The risk management model needs to be practical, and a balance has to be struck between lowest cost and maximum benefits, and which risks to prioritise. It also needed to be sustainable, she said, citing the use of solar panels as an example of risk and sustainability in operations, which could be applied to carbon trade-offs.

 

Both Allan and Maheran were in agreement on the need to have the right tone from the top where risk management was concerned. “Top management should walk the talk,” said Allan. “If management raises awareness of shortfalls, they should take notice.” Maheran added that it was important to also make the subject matter understandable and relatable. “No jargon! Don’t show them the Standards documents – nobody will understand!” she quipped, stressing that the board has multiple decisions to make. A snapshot of the plan, suggestions for mitigation and how to proceed, will be more effective.

 

Remarking that ERM was not just a paper exercise, Allan said that it could build a culture of openness in the organisation, but personal relationships with people at all levels was paramount (to its success). Queried on how to know if ERM was working, he said that quantifying it was difficult, but one indication would be its application to decision-making at all levels. Maheran urged users to ask the right questions and shape ERM conversations with their organisations. Using an established example, she said, “HSE conversations have been around for a long time. ERM conversations should be at this level too.”