What keeps your CEO awake at night?
An interesting article appeared the Business Continuity Institute 'Continuity' magazine this month, discussing the relationship of Enterprise Risk Management (ERM) and Business Continuity Management (BCM).
The 2008 Risk Management Survey - Business Insurance Europe, uncovered the key issues keeping CEO's awake at night are:
- Financial Volatility
- Energy Availability
- Suppy Chain
We can all relate to some, if not all, of the above categories of risks and incidents.
The article goes on to discuss the alignment of ERM and BCM, where each should be 'owned' in any organisation, and how to include the roles in staff job-descriptions and performance management objectives.
Our own experience surrounding ownership is varied. Commonly, ERM and BCM are driven by the Board Audit & Risk Committee, but depending on corporate structure, are owned within any one of a number of business units - Compliance, Governance, Finance (CFO), Information Technology (CIO), Quality, or Security. As the article points out, this variation is due to the size, scale and complexity of the organisation.
Which approach is most successful? There is no right or wrong answer, but organisations that manage risk and continuity planning as ongoing processes, rather than as a once-off projects, are way ahead of their competitors, and statistically, have greater maturity, and hence probability of recovery, if they experience an incident.
A copy of the Continuity Magazine article can be found here
(.pdf format, 208Kb)
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